Topic: China: What happened & what’s next?
Speaker: Yanan Wu, CFA, Ph.D.
CCFA has successfully held another lunch-and-learn event on Friday, February 12th, 2016. We were honored to have Dr. Yanan Wu as the speaker, who is the Chairman and founder of Zhen Rong Bao (ZRB), an Internet+ financial products designed for retail investors. Yanan shared his insider’s observations on Chinese capital market and economy and the impact on global investment opportunities. Around 40 financial professionals attended the event. The talk was well received and ended with an animated Q&A session showing very good feedback from the audience.
Dr. Laurent Wu, the moderator of the lunch-and-learn event, gave a warm opening remark about Yanan’s background. Yanan then began sharing his exceptional career path. Understanding the similarity between the physical world and the financial market, Yanan decided to leave Physics academia to pursue practical work in the financial industry and worked as a Senior Portfolio Manager at TD Asset Management from 1999 to 2009. Second impactful transition took place in 2009 when Yanan shifted from Traditional Finance to Internet+ Finance. He joined CITIC-Prudential Fund Management in Shanghai as Head of Quantitative Investment, and launched the first batch of Chinese structured leveraged funds (AUM 20 billion RMB). Yanan delivered a mobile app of robot asset allocation and then launched ZRB in 2014.
The phenomenal but abnormal growth of Chinese stock market has brought huge investment opportunities. However, Yanan used the analogy of “Mad Bull” to describe the illusional Chinese bull market backed by the excessively high leverage. Bubbles eventually burst in 2015. Yanan discussed the three phases of A-share crashes and its aftermath, highlighting events such as liquidity squeezing, RMB daily floating band widening and circuit breaker.
Understanding the unbalance between the massive liquidities with shortage of assets, Yanan introduced some interesting and unique facts about China including the lost dividends and the Xiconomics. Yanan also generously shared his own opinion on Chinese asset allocation in 2016, delivering the Chinese key financial reform themes and key financial to our audience.
In the last section of the speech and during Q&A, Yanan focused on the importance of combination of alternative asset management and internet opportunities. With diversification of investment portfolio and usage of rapid growth of mobile internet technology, the coming year in China is sure to be full of challenges and opportunities.
From CCFA Communication
