Recently, the China Securities Regulatory Commission (CSRC) published The Notice on How to Conduct the Trial of Public Equity Funds Investment Advisor, China Asset Management, E Fund Management, Harvest Fund Management, China Southern Asset Management, and Lombarda China Fund Management are now qualified to conduct the trial of public equity funds investment advisor. As an important move to advance the marketisation of the Chinese capital market, the trial may potentially change the long-existing seller-oriented model in the fund industry. It can push sellers of securities investment funds to prioritise the rights of investors.

On the evening of December 10, 2019, the China Wealth Management 50 Youth Academic Forum (CWM50) co-organised its seminar on the trial of public equity funds investment advisor and the transformation of wealth management with Beijing Fund Town. Fu Shan, Acting Secretary General of CWM50, Lei Hong, Chairman of the Asset Management Association of China and Director of CWM50, Ying Li, Head of Department of Market Supervision of SCRC and Gai Cai, one of the leading drafters of China’s Securities Investment Fund Law and the Trusteeship Law attended the seminar.  

Zhaohui Shen, Associate Professor of Law at Tsinghua University and Gangqing Luo, Acting General Manager of China International Capital Corporation, delivered keynote addresses at the seminar. Their speeches were centred upon the comparison between the trial of public equity funds investment advisor and the service of investment advisor in foreign markets. They analysed the potential conflict of interests that might occur in relation to sales commission and investment advice, and expressed their own perspectives on key issues, such as the transformation of wealth management and investor education. As representatives of the trial companies, Erdong Hu, Vice CEO of China Wealth Management and Lei Feng, Assistant to the General Manager of the Multi-Asset Department of E Fund Management, introduced the organisational structure and the current service portfolio of their trial respectively. Jing Feng, Vice General Manager of Bosera Asset Management and representatives from Ping An Securities, Ping An Bank, China Galaxy Securities, Orient Securities, CCB Pension Management, HUAXI Securities, Yongan Futures, China Life Pension, and other securities companies also exchanged their ideas at the seminar.