Today, Hong Lei, Party Secretary and chairman of Asset Management Association of China, attended the launching ceremony of the Private Fund Investor Protection Month by Asset Management Association of China as well as the inauguration of Investor Education Center of Beijing Fund Town, and delivered a speech.

Distinguished guests and officials,

Good morning!

First of all, on behalf of Asset Management Association of China, I would like to express my warmest congratulations on the completion of Investor Education Center of Beijing Fund Town. As China’s first professional investor education base to serve private fund investors, the Investor Education Center of Beijing Fund Town is hoped to develop investor education in the field of private fund, continue to effectively carry out investor education that is suitable for the sector of private fund and the characteristics of investors, practically enable the majority of investors to protect their legitimate rights and interests, cultivate mature and reasonable professional private fund investors, and thus to boost the sound and sustainable development of China's asset management market.

After 40 years of reform and opening-up, we are welcoming the 70th anniversary of the founding of the People’s Republic of China. China has come to a new historical stage of building a moderately prosperous society in all respects and a moderately strong socialist country.

First, the purchase of fund shares is an investment behavior. Investors take risks and gain profits according to their fund shares while fund managers only charge a certain level of management fees. For savings products, investors are generally promised a fixed income in advance, and meanwhile the issuer of the savings product (usually a commercial bank) provides credit guarantees for the savings products, so the investors gain risk-free income. Investors must clearly understand that “taking risks and gain profits” is the basic rule of fund operation.

Second, the fund must faithfully disclose to investors important information closely related to their interests, including investment strategies, risk-return characteristics, and real conditions of the underlying assets. For savings products, only the lock-up period of capital and predicted profits are generally disclosed to investors, who do not know the actual investment direction of funds.

In the series of activities of the “20th Anniversary of the Fund Industry” held in Beijing Fund Town last year, the Association organized 27 representatives of the fund industry to read the Declaration on Social Responsibilities of China’s Fund Industry to spread the fund industry developing idea of profession and integrity, marking the start of a new journey for the development of the fund industry .

Since its inception, the Association has attached great importance to the education and training of fund investors. It has trained millions of investors by filming professional videos for investor education, producing teaching materials and playing cards for publicity, and organizing on-site and online training activities, etc. Taking the inauguration of today's investor education center as an opportunity, the Association also co-launched a series of activities of “Private Fund Investor Protection Month” with Beijing Fund Town.

Thank you all!