GTJA's Client-Centric Fund Advisory Reshapes China's Wealth Management

Guotai Jun'an (GTJA) is spearheading a fundamental shift in China's wealth management industry, moving from traditional product sales to a client-centric fund investment advisory model. This "buyer-side" approach, driven by market demand and supportive regulatory policies, aims to solve common investor pitfalls by providing personalized, long-term guidance, ultimately fostering a more sustainable and rational investment environment.

Definition & Core Philosophy of Fund Advisory

• "Fund investment advisory" provides professional advice and portfolio management for public funds, fundamentally differing from traditional product selling.
• It adopts a "buyer-side" stance, prioritizing clients' long-term interests to solve the problem of "funds making money, but fund investors not making money" due to poor trading behaviors.
• The model emphasizes personalized, ongoing "accompanying" services, guiding investors through market fluctuations and encouraging adherence to sound investment principles.

Guotai Jun'an's Client-Centric Strategy & Offerings

• GTJA, approved for pilot programs in February 2020, leads with a client-first philosophy, offering comprehensive and personalized wealth management.
• Their fund advisory brand, "Jun Xiang Tou" (君享投), is accessible via the Junhong APP, enabling digital account opening, risk assessment, strategy selection, and transactions.
• They offer diverse public fund portfolio strategies covering various asset classes (equity, fixed income, overseas, thematic) to cater to different risk appetites and objectives.
• GTJA provides a full-lifecycle "accompanying" service, including pre-investment due diligence, continuous monitoring, and post-investment support (monthly reports, performance analysis).
• Services cater to a wide range of clients, from retail investors (even below RMB 100,000) to professional investors via Guotai Junan International (GTJAI) and corporate clients.
• The integration of AI and big data enables a "thousand people, thousand strategies" approach, allowing for intelligent dynamic rebalancing and highly customized services.

Regulatory Landscape & Market Context

• The fund investment advisory business officially began as a pilot program in October 2019, with recent policy directives signaling a transition to regular operation ("试点转常规").
• This shift is a crucial step in transforming China's wealth management from a "seller-side sales" to a "buyer-side service" paradigm, supported by policies like the "Opinions on Promoting Medium- and Long-Term Funds into the Market."
• Challenges include a general lack of public awareness, complexity in building robust technological systems, and a shortage of qualified talent, which regulators and industry players are working to address.

Impact & Future Outlook

• The "buyer-side" model helps address investor underperformance by discouraging impulsive trading and encouraging longer holding periods through professional guidance.
• It reshapes the competitive landscape, with firms like GTJA leveraging research, product evaluation, and technological investments for a competitive edge.
• This approach fosters a more stable and rational investment culture among retail investors and aids corporate clients in asset preservation.
• The business is poised for continued growth and innovation, with increasing integration of AI and big data enhancing personalization and accessibility of services.