Since January this year, ICBC continues spending efforts on the innovation in wealth management business, focusing on increasing product earnings and portfolio. Growth of asset management business is impressive. ICBC's wealth management products are very competitive in the market. Statistics show that ICBC has sold RMB 2.78 trillion of self-developed wealth management products during the first six months of the year, up 36.6% year-on-year. ICBC holds on to be the largest asset management bank in China.
In wealth management business, ICBC has an offering encompassing 8 product lines: ultra-short wealth management, fixed-income investment product, investment product for securities, private equity investment, commodity investment, foreign exchange, special investment and value-added services. Investment range covers bonds, stocks, foreign exchange, commodity, derivative in China and overseas, in markets that cannot be reached by investors (interbank markets, overseas markets) for direct investment, markets (art products, private equity of unlisted companies) that cannot be easily understood by investors. ICBC also makes aggressive move in product consolidation and innovation. In January-June period, ICBC rolled out a range of wealth management products which were warmly received. "Sophisticated • Win" - ICBC Global Growth, first quantitative investment product under the independent management of ICBC, allows investors to diversify investment across the globe by sharing the global growth earning, taking advantage of new technologies of the new stocks in the secondary market, growth of emerging markets, new profitability pattern. This is a new product for domestic investors who do not hold any FX asset. Besides, ICBC also rolled out "Happy Life I", "Happy Life II", wealth management products in RMB under welfare programs, "Insurance Highlight", a series of new value-added-type of investment product specially designed for private banking customers and high-net-worth customers to invest in painting, art products and equity investment products.
An executive with ICBC said, as ICBC gathering momentum in asset management business, ICBC wins the recognition from the market for its stable asset management service, good and standard wealth management products, risk disclosure, trust services. In the next step, ICBC will remain committed to the business philosophy of "trust, value, professional, innovation" to offer a full range of best-quality, rich, convenient asset management services to all customers.
Background
Asset Management Business
Asset management is a service whereby bank manages the asset entrusted by the customers, with an aim to preserve or add value to the asset. The bank collects a certain management fee and performance fee. Asset management includes services for managing investment in wealth management products, trusted investment, advisory and consultancy.
In China, asset management service provided by commercial banks is still in early stage. Yet the growth is impressive. Today, banks use asset management service to retain customers, adjust liability portfolio, and nurture new profitability growth point. ICBC is the earliest commercial bank in China to open the business, also the largest asset management bank in the country with the largest business scale, most complete range of products and best brand.
In July 2009, ICBC was the first bank in China to set up Asset Management Department for the launch of wealth management products as well as investment operation. The new Department separates ICBC asset management business from the in-balance sheet liability business and enables the Bank to move own investment in tandem with the asset management business, under separate risk control. In wealth management business, front-office is in charge of marketing, middle-office oversees investment and management, while back-office performs clearing and processing. The clear job responsibilities covering business development and risk control enables ICBC to stay at the forefront in compliance management among the peers.
In asset management service, ICBC remains focus enacting in the best interest of the customers, driven by product innovation, business innovation, rules and system development. The good and standard wealth management products, risk warnings and trust services provided are fully recognized by the market. "Secure Profit", "Perfect Match", "Sun & Moon", "Link Express", "Earn Every Step", "Insurance Highlight", "Enjoy Return" are ICBC wealth management products well-known in the market with very good brand value.