Core Viewpoint - The essence of the financial industry is risk management, with a strong risk culture being crucial for balancing business expansion and risk control [1][6] Group 1: Risk Culture and Liquidity Risk Management - Liquidity risk management is a vital component of a securities company's stable operation, requiring a dynamic balance between continuous capital inflow and reasonable utilization [1][4] - A deep-rooted risk culture ensures that funds flow safely and controllably, preventing the company from pursuing aggressive expansion without considering the stability and cost of funding sources [2][4] Group 2: Regulatory Indicators and Risk Culture - Regulatory indicators like Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) are not just compliance requirements but also tangible expressions of risk culture [3] - LCR emphasizes a "bottom-line thinking" approach, while NSFR reflects a "long-termism" philosophy, both aligning with the principles of risk culture [3] Group 3: Dynamic Asset-Liability Adjustment - The essence of asset allocation for securities companies involves liquidity transformation, which requires timely adjustments to the asset-liability structure based on various internal and external factors [4] - Each structural adjustment tests the depth of the risk culture, as blind optimism or excessive caution can lead to liquidity crises or missed opportunities, respectively [4] Group 4: Conclusion on Risk Culture - Effective liquidity risk management is fundamentally a dialogue with risk culture, where every decision from fundraising to business layout must be anchored in risk awareness [6] - A robust risk culture is essential for achieving long-term sustainability and resilience in the financial market [6]

Core Viewpoint - The company conducted its fourth consecutive liquidity emergency drill to test and improve its liquidity risk management emergency plan, focusing on the end of the third quarter and spanning five trading days [1][2]. Group 1: Emergency Drill Overview - The emergency drill consisted of three parts: practical exercises, process rehearsals, and simulation analysis [1]. - Practical exercises targeted daily open products, monitoring asset allocation, liquidity risk indicators, product redemptions, and asset trading to assess liquidity management capabilities [1]. - Process rehearsals involved simulating extreme scenarios to ensure departments are familiar with emergency procedures, including client communication and regulatory reporting [1][2]. - Simulation analysis evaluated the company's response capabilities under systemic liquidity risk scenarios [1][2]. Group 2: Risk Management Enhancements - The drill covered key aspects such as risk monitoring, response mechanisms, and collaborative handling, providing quantifiable and optimizable practices for liquidity risk management [2]. - The company improved its identification and control of liquidity risks, refined emergency response processes, and enhanced cross-departmental crisis management efficiency [2]. - A comprehensive liquidity risk management system was established, focusing on investment portfolio liquidity management, investor liquidity needs, liquidity risk stress testing, and emergency planning [2]. Group 3: Future Plans - The company plans to refine its liquidity early warning monitoring system, optimize emergency response processes, and enhance liquidity risk management levels based on the experiences gained from the drill [3]. - The goal is to cultivate differentiated competitive advantages and support the high-quality development of its wealth management business [3].