Core Viewpoint - The wealth management industry in China is undergoing a quality upgrade, which is essential for meeting the growing demand for wealth preservation and appreciation, enhancing capital market stability, and directing funds towards high-growth sectors, thereby supporting economic transformation and upgrading [1][2][3][4] Group 1: Industry Growth and Market Position - Over the past five years, the average annual growth rate of assets under management in China's trust, wealth management, and insurance asset management sectors is approximately 8%, making it the second-largest asset and wealth management market globally [1] - By the end of 2024, the total assets under management by various institutions, including insurance asset management, public funds, bank wealth management, trust institutions, and private equity funds, is expected to exceed 150 trillion yuan, setting a historical record [1] Group 2: Meeting Resident Needs - The upgrade in the wealth management industry is crucial for addressing residents' urgent need for wealth preservation and appreciation, particularly in a low-interest-rate environment [2] - Enhancing the quality of wealth management services can help alleviate residents' "yield anxiety" by providing more diverse and competitive asset management products, thereby boosting consumer confidence and domestic demand [2] Group 3: Capital Market Stability - High-quality, long-term wealth management funds are vital for stabilizing the capital market, but there is a pressing need to cultivate more patient and long-term capital [3] - The upgrade in wealth management will focus on long-term product design and value-based investment, which will help attract and retain more long-term capital in the market, reducing short-term volatility [3] Group 4: Economic Transformation Support - The quality upgrade in the wealth management industry will facilitate the efficient allocation of funds to high-potential growth areas, maximizing overall economic benefits [4] - As China's economy accelerates its transformation, the wealth management sector must adapt its financial services to support technological innovation and market application, which are crucial for economic development [4] - The upgrade process is complex and requires a collaborative effort among regulatory bodies, financial institutions, and investors to achieve sustainable progress [4]