Zheng Quan Shi Bao·2025-10-15 18:10Core Insights - The future of wealth management in China will be significantly influenced by the buy-side investment advisory model, supported by AI applications to enhance the transmission mechanism from headquarters to frontline and clients [1][2] Group 1: Industry Trends - China has the largest middle-class population globally, necessitating a robust wealth management business to match this demographic [1] - Wealth management and asset management are increasingly becoming a larger share of financial institutions' business, with the buy-side advisory model emerging as mainstream [1] - Currently, over 70% of retail brokerage revenue in China comes from brokerage commissions and margin financing, indicating a potential shift towards increased revenue from buy-side advisory services [1] Group 2: Current State of Wealth Management - The wealth management industry in China is in its early stages, characterized by three key developments: 1. Institutions are increasingly engaging in advisory services as a significant revenue source 2. Securities firms are transforming their organizational structures to reduce reliance on traditional brokerage services 3. There is a notable improvement in team structures, with a significant increase in advisory personnel and a decrease in brokerage staff [1] Group 3: Challenges and Recommendations - The depth of buy-side advisory services in China is currently insufficient, lacking excellent client managers and not fully leveraging long-term investment strategies [2] - The core of buy-side advisory lies in the shift from a pure agency relationship to a full discretionary relationship, requiring a fundamental change in service philosophy from product-oriented to client-oriented [2] - There is a recommendation to expand the range of investment targets for fund advisory services to enhance their effectiveness [2] Group 4: Role of Technology - AI should focus on solving core issues related to asset allocation and its transmission, ensuring that institutional capabilities are effectively communicated to frontline employees and clients [2] - Wealth management remains fundamentally a people-centric business, with technology serving as an auxiliary tool; the true essence lies in the understanding of risk, financial instruments, and compliance by client managers [2]