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He Qing accepted an exclusive interview with Xinhua News Agency

From:Xinhua Net|     2020-05-26 09:48:29|     Print

SHANGHAI, May. 13 (Xinhua Net)/------The year 2020 marks the completion of Shanghai International Finance Center and the 30th anniversary of Pudong's development and opening up. As a local financial institution in Shanghai and a leading securities company in China, Guotai Junan (GTJA) has witnessed the magnificent development of China's financial industry. Xinhua News Agency recently interviewed He Qing, secretary of GTJA Party Committee and chairman of GTJA.


1. Since the beginning of this year, has the COVID-19 outbreak affected Guotai Junan in some way? How do you view China's economic and financial situations?

He Qing: It is true that the epidemic has caused a big impact on China's economy, but it also shows us the resilience and future growth potential of China's economy, and the role of China as a world power. Since the COVID-19 outbreak, all parties concerned ha-ve insisted on grasping the epidemic prevention and control, and increasing financial support to areas with serious epidemic situation. At the same time, they ha-ve been grasping financial reform and opening up, firmly supporting the development of the real economy, coordinating efficient and orderly policies, and continuously operating the economy within a reasonable range. As the epidemic prevention and control situation improves, the medium and long-term trend of the Chinese market is becoming more optimistic with increasingly obvious growth potential.

In this epidemic, China's application of 5G technology and digital economy not only effectively prevents and controls the epidemic, stabilizes the economy, and strengthens China's confidence in innovation and upgrading for the future, but also provides effective and valuable experience for global epidemic control and economic stability. It can be said that China has played a backbone role in epidemic prevention and control, financial market stability and global economic stability, demonstrating the demeanor of a big country.

Guotai Junan is basically stable and good during the epidemic. To cope with the impact of the epidemic, more than 300 business departments of the company provide online remote services to clients through digital and information means after the resumption of the market, with the turnover accounting for more than 95%.


2. Under the background of fierce competition in various fields of the brokerage industry, what are the highlights of Guotai Junan's development in recent years? What is the future layout direction?

He Qing: The company has always taken the lead in the industry to implement decisions and arrangements of the Central Government and Shanghai Municipal Party Committee and Municipal Government, and to serve the national strategies. Facing the fierce competition in the industry and the rapidly changing market, we insist on building the primary core competitiveness of compliance risk control. While maintaining compliance and steady operation, all of our businesses develop in an all-round and balanced way. Among the top five securities companies, Guotai Junan is the only one that has been rated as AA Level of Class A for 12 consecutive years, and has maintained the highest international credit rating of S&P and Moody's in the domestic industry.

At the same time, Guotai Junan boasts innovative gene and innovative talents. Over the years, the continuous investment in science and technology has shown its effect, making the company rank first in financial technology in the industry. The company actively adapts to the transformation trend of wealth management in the industry, builds an artificial intelligence financial technology platform through advanced financial technology means, and continuously optimizes Junhong retail customer service system. Recently, for clients at different levels, we are discussing cross-field financial technology cooperation with banks and insurers, hoping to build an ecological brand of wealth management with technology as the driving factor.

We are also accelerating our international layout, so as to open a development road with Hong Kong as the base, expanding to the Asia-Pacific region and then the Europe and the United States. In 2019, the company further focused on the "Belt and Road" initiative, deepened the layout in Southeast Asia, completed the holding of Vietnam Investment Securities Company, set up a European representative office, and continuously provided clients with comprehensive one-stop services such as global financing, mergers and acquisitions, transaction, investment and asset allocation. It is committed to becoming a long-term preferred professional partner for domestic clients to "go out" and overseas clients to "enter China".

Of course, we also feel the pressure or some shortages. In particular, when compared with the peer securities companies that have developed very well over the years, there is still room for improvement in our core indicators. On the one hand, our asset scale and capital strength still need to be improved; on the other hand, as the commission rate drops, higher requirements are put forward for Guotai Junan to better maintain the resilience and flexibility of its balance sheet, and to provide comprehensive financial services for various clients on the strength of collectivization, platforms and coordination. In addition, it will further lay out its international products.


3. This year marks the 30th anniversary of Pudong's development and opening up and the completion of Shanghai International Finance Center. How does Guotai Junan feel as a participant and witness?

He Qing: Guotai Junan was born from Guotai Securities and Jun'an Securities. In 1992, these two companies were established in Shanghai and Shenzhen respectively, where the two major exchanges located. So they had a first-mover advantage. After Guotai and Jun'an were merged to found Guotai Junan in 1999, the headquarters was located in Shanghai. In the process, the company experienced ups and downs in China's capital market, and finally withstood the test. In 2015 and 2017, the A share and H share of Guotai Junan were listed respectively, further expanding the company capital and strengthening its strength, so the company entered a stage of high-quality development. Over the past 28 years, Guotai Junan has been lucky enough to witness and participate in the development of the capital market. It has also benefited from the construction of Shanghai International Finance Center and the strong leadership of Shanghai Municipal Party Committee and Municipal Government.

In the latest ranking of global financial centers released by a British think tank recently, Shanghai rose to fourth for the first time. Shanghai's factor market, the concentration of financial institutions, financial transaction volume, asset scale and financial talents have all made remarkable progress compared with the past decade or so. With the launch of the free trade zone, the listing of technology innovation board and the listing of Lingang New Area, Shanghai has always been in the forefront of deepening reform and expanding opening up. Finance has played a role in serving and integrating development in this process.

As a micro-subject, we feel that Shanghai's business environment and the ability of the financial industry to serve the real economy have improved significantly: infrastructure such as payment, settlement, clearing and cross-border transactions have been further perfected; the establishment of the Shanghai Financial Court promotes the legal environment of Shanghai International Finance Center; and Shanghai is becoming a RMB asset pricing center. In the past, Chinese enterprises raised funds in the international market, but now, more and more institutions have settled in Shanghai to look for asset allocation, and Shanghai has been acting as a "bridgehead" in opening up to the outside world. Besides, the advantage of talents is further consolidated.

2019 is a significant year for China's capital market, as the direction of marketization, legalization, internationalization and institutionalization became clearer, the inclusiveness of the market was further improved and the vitality of market players was stimulated. In 2020, China's capital market and securities industry will open a new chapter with "deepening reform" and "full opening". China's capital market is 30 years old and has reached a new historical starting point. We are full of confidence in China's capital market, where the dividends of reform and opening up are continuously released. In the future, with the further development of the direct financing market, it will bring both challenges and opportunities for Guotai Junan.


4. Since April 1, China has lifted the restriction on the ratio of foreign capital stocks of securities dealers and fund management companies. How do you see the further opening up of China's financial sector, whether it is an opportunity or a challenge?

He Qing: Opening up forces reform, and reform promotes development. All walks of life are gradually growing through opening up. History has proved that expanding the opening up of the industry is both a challenge and a development opportunity for promising and competent players. It should be noted that after foreign investment banks enter, their physical network base, talent base and customer base in China also need to go through the construction process from scratch. This is the key window period for domestic institutions to actively prepare for competition, consolidate and expand the customer base and talent base, and improve their strength in all directions.

After years of development and growth, local securities companies have great advantages in the accumulation of local talents, a wide customer base, branches all over the country, online service platforms built with technologies, and the reputation among common people. So they are fully confident in the competition.

Foreign and local securities companies will also have more cooperation to enrich and activate the market. Recently, one of the first companies in Shanghai to apply for a foreign public fund license chose Guotai Junan as its public fund custodian. This is a process of mutual integration, competition, cooperation and learning from each other.

In the future, Guotai Junan will continue to benchmark international best practices to pursue excellence. We will comprehensively improve our core competitiveness, actively meet various possible competitive challenges, strive to seize the opportunity of policy dividends from reform and opening up, and make due and greater contributions to the hub function construction of China's capital market.