Core Viewpoint - The China Securities Association (CSA) has issued guidelines to encourage more brokerage firms to apply for fund advisory business qualifications, aiming to enhance investment research capabilities and wealth management services [1] Group 1: Regulatory Changes - The new regulations will guide brokerages to strengthen their investment research capabilities and build a high-level advisory talent pool [1] - The CSA supports the transformation of brokerage firms' securities advisory business and standardizes the development of bond advisory services [1] Group 2: Encouragement for Brokerage Firms - The CSA encourages more brokerages to apply for fund advisory business qualifications to expand the buyer-side intermediary force [1] - There is an emphasis on guiding brokerages to standardize asset management operations and enhance active management capabilities [1] Group 3: Market Behavior and Mechanisms - The CSA aims to strengthen research on secondary market trading behaviors and promote optimization of market-making and trading mechanisms [1] - Support will be provided for brokerages to enrich market maker hedging methods and reduce market-making costs [1]

Core Insights - The public fund companies are increasingly diversifying their subsidiary structures, moving from rapid expansion to a more specialized and differentiated approach in response to regulatory changes [1][5] - Major public fund companies like E Fund and Huaxia Fund are establishing new subsidiaries to enhance their wealth management capabilities and service offerings [2][4] Group 1: Recent Developments - E Fund has established a new subsidiary, E Fund Wealth Management Fund Sales (Guangzhou) Co., Ltd., focusing on buy-side advisory services, with over 100 team members [1][2] - Huaxia Fund has received approval to set up Beijing Huaxia Jinke Information Service Co., Ltd., which will provide operational services to commercial banks and wealth management companies [2][3] - Several public fund companies, including招商基金 and 中航基金, are awaiting approval for new subsidiary applications, indicating ongoing expansion efforts [3] Group 2: Market Trends - The number of public fund company subsidiaries has exceeded 100, with a significant presence of sales subsidiaries, such as E Fund Wealth and Huaxia Wealth [4] - The establishment of overseas subsidiaries is also a key strategy, with over twenty public fund companies having set up entities in markets like Hong Kong and Singapore [4][5] - Regulatory support for differentiated development is encouraging public fund companies to establish specialized subsidiaries for various services, including REITs and private equity investments [5]

Group 1 - The 14th China (Guangzhou) International Financial Trading Expo showcased advancements in technology-driven financial services, with a total of 51 projects signed, amounting to over 71 billion yuan [1] - The expo focused on the integration of digital finance and industrial ecosystems, featuring over 20 forums discussing topics such as inclusive finance and industrial mergers [1] - Guangfa Securities highlighted its AI applications in wealth management and investment research, showcasing a dance performance by a humanoid robot powered by AI technology [2] Group 2 - Guangfa Fund presented a dynamic human-machine interaction space, emphasizing its ETF series, investment advisory services, and customer service brands [2] - Industrial Bank's Guangzhou branch introduced a "Smart Finance Experience Hall," featuring intelligent remote machines for efficient handling of complex banking services [2] - Yuexiu Capital, participating for the 14th consecutive year, focuses on integrating technology and industry innovation, managing over 32.5 billion yuan in funds and supporting 26 tech companies in achieving IPOs [2] Group 3 - The Guangzhou Financial Holdings Group showcased its business strategies through an interactive digital human, while its health investment fund became the only state-owned private equity fund focused on biomedicine and health [3] - The Bay Area Special Asset Empowerment Service Platform was established last year to manage special asset projects, providing services for nearly 200 billion yuan in assets [4] - The platform has organized six large-scale roadshows and provided full-process empowerment services for 422 projects, involving 84.168 billion yuan [4] Group 4 - The Bay Area International Restructuring Center was formed to assist distressed companies with restructuring and recovery services, addressing the increasing need for corporate relief [5] - The center aims to provide effective judicial support for corporate restructuring through professional advisory services and collaboration with industry funding resources [5] - The synergy between the Bay Area Special Asset Platform and the International Restructuring Center is expected to enhance the efficiency of corporate restructuring services [5]

Core Viewpoint - The recent policy by the China Securities Regulatory Commission (CSRC) to include Sci-Tech Innovation Board ETFs in the fund advisory configuration aims to attract more medium to long-term capital into the new productive forces sector, enhancing the inclusiveness and adaptability of the system [1][4]. Group 1: Fund Advisory Business Development - The fund advisory business has evolved significantly over the past five years, with the number of pilot institutions increasing to 60, covering various entities such as banks, brokerages, and third-party channels [2][11]. - The inclusion of Sci-Tech Innovation Board ETFs is expected to enhance the flexibility of asset allocation in fund advisory services, allowing for more personalized investment strategies [7][10]. - Fund advisory institutions can now construct richer advisory strategies based on ETFs, reducing transaction costs for investors and promoting the aggregation of medium to long-term capital [5][6]. Group 2: Impact of ETF Inclusion - The policy change allows fund advisory institutions to directly invest in ETFs, improving tracking accuracy and trading efficiency, which enhances overall investment efficiency for clients [6][8]. - The move is seen as a significant step towards transforming the fund advisory industry, potentially leading to a more mainstream "advisory + ETF" service model [7][14]. - The inclusion of ETFs is expected to broaden the scope of advisory strategies, allowing for innovative asset allocation approaches that can meet diverse client needs [12][13]. Group 3: Future Prospects and Challenges - There is a strong expectation that more ETF categories will be included in the advisory scope, which could further enrich the strategies and product offerings available to clients [13][15]. - The fund advisory sector faces challenges such as the need for improved investor education on ETFs, system support for trading, and addressing liquidity issues for niche ETFs [16][18]. - The transition to a more ETF-centric advisory model requires upgrades in research, risk control, and technical tools to meet the evolving demands of the market [17][18].

Core Viewpoint - The new classification evaluation system for securities companies aims to shift the focus from scale to value creation, enhancing the industry's ability to serve the real economy and support national strategies [1][2][5]. Group 1: Regulatory Changes - The China Securities Regulatory Commission (CSRC) has released a draft for public consultation on the revised classification evaluation regulations, emphasizing the importance of guiding securities companies to better fulfill their roles [1][2]. - The revised regulations will introduce a new evaluation framework focusing on risk management, compliance, business development, and functional performance, particularly in serving the real economy and national strategies [2][3]. Group 2: Focus on Profitability - The new regulations will prioritize net asset return as a key indicator of capital efficiency, encouraging securities firms to concentrate on high-profitability businesses and improve operational efficiency [4][5]. - The adjustments will eliminate certain revenue-based incentives while increasing the weight of net asset return, thus promoting a shift towards a more quality-focused development model [4][5]. Group 3: Evaluation Mechanism - A new specialized evaluation for functional performance will be conducted by the Securities Association, with standards focusing on the effectiveness of securities companies in executing key financial strategies [3][6]. - The evaluation will adapt over time to reflect industry developments and the need for securities firms to enhance their functional roles [3]. Group 4: Compliance and Penalties - The revised regulations will enhance penalties for major violations, aiming to deter misconduct and improve market fairness [7][8]. - Adjustments to the scoring system for administrative penalties will ensure a more balanced approach, allowing firms with minor infractions to recover more easily while imposing stricter scrutiny on those with serious violations [8].

Core Insights - The article highlights the significant growth and evolution of fund advisory services in China, with institutions like E Fund and Yingmi Fund reporting impressive performance metrics and a shift towards more personalized client services [1][2][3]. Group 1: Performance Metrics - Yingmi Fund's advisory assets exceeded 41 billion RMB by February 2025, with a growth rate of 28% in 2024 and an overall increase of 88% from 2022 to 2024 [3]. - E Fund's advisory services have served over 120,000 individual clients and more than 100 institutional clients, with a profitability rate of approximately 70% since the service's launch [3]. - By the end of 2024, the advisory service of China Merchants Securities had a client base of 80,200 and an asset scale of 5.112 billion RMB, marking a 9.79% increase from the previous year [3]. Group 2: Client Behavior and Needs - The demand for advisory services is diverse, requiring a shift from simple product recommendations to comprehensive financial planning and personalized investment strategies [2][5]. - Clients of Yingmi Fund have an average holding period of 690 days, indicating a long-term investment approach, with 70% of client assets allocated to equity products [5]. - The relationship between advisors and clients is built on trust and understanding, which helps clients navigate market volatility and achieve better long-term returns [5]. Group 3: Future Directions and Innovations - The advisory business is transitioning from a fund-based model (1.0) to a client-account-based model (2.0), focusing on financial planning and asset allocation [7][8]. - High-quality advisory talent is essential for the sustainable development of the advisory business, with a need for standardized training and certification processes [9]. - Technological innovation, including the responsible use of AI, is crucial for enhancing advisory services and improving client experiences [10].