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cailianshe news, september 14 (reporter liang kezhi)on september 13, the second china financial industry annual conference and the "topology award" ceremony hosted by cailianshe was held in lujiazui, shanghai. more than 200 representatives from dozens of institutions in various financial fields, including banks, insurance, trusts, wealth management subsidiaries, and funds, gathered together to have a heated discussion and in-depth exchanges on the theme of "pioneering a new stage of financial development".

at the roundtable session on the theme of "challenges and opportunities of the downward risk-free rate to the asset management industry", liao xinchang, deputy general manager of hive fund, said that the biggest challenge of the continued downward trend of risk-free rates comes from the contradiction between investors' requirements for expected returns and the return rate of asset management institutions. for ordinary chinese people, the expectation of future returns may not be greatly adjusted in a short period of time. so the two are in a contradiction.

the second challenge is on the investment side. if the risk-free interest rate continues to decline, from the perspective of mining returns, fixed-income products may need to extend their duration and may need to allocate more credit bonds, which will inevitably bring about requirements for trading capabilities. if the asset shortage continues, many institutions may explore more credit products, resulting in a compression of credit spreads, which poses a great challenge to the pricing and risk management of credit products. in addition, higher requirements are also placed on the asset management institutions' ability to allocate major asset classes.

liao xinchang believes that in the long run, diversified allocation of assets driven by different macro factors, such as bonds, stocks, commodities, and overseas assets, is a relatively cost-effective product. this is determined by the low correlation of the betas of different assets in the market.

regarding future trends, liao xinchang believes that there are three directions. the first is that there will be more and more multi-asset allocation and multi-strategy products, and customers' acceptance of this will also increase in the future.

second, the trend of tool-based products and passive investment products will continue. based on foreign experience, passive investment and tool-based products have a direct relationship with customers, and customers have a high degree of understanding and acceptance.

third, financial services should serve the real economy, and asset management institutions are increasingly showing this. the investment trends of asset management institutions need to be adjusted along with the transformation of china's economy. asset management institutions will also focus on five major topics in investment and risk management, such as the design and investment of pension and green products.