CICC Invited to Attend 2021 VTB Capital Investment Forum "RUSSIA CALLING!"

2021-12-01Corporate News

The 13th VTB Capital Investment Forum "RUSSIA CALLING!" (“the Forum”) was held online between November 30 and December 1, 2021. Firstly organized in 2009, the Forum is recognized as one of the largest and most influential international investment forums with the highest standard in Russia. This year, under the theme of “Rethinking Priorities, Embracing Sustainability”, the Forum gathered Vladimir Putin, President of the Russian Federation, Governor of the Bank of Russia, Economic Development Minister, Finance Minister, among other Russian and foreign business leaders and experts, and political figures. Mr. Yicheng Xu, Assistant President and Head of Asset Management Segment of CICC, was invited as a guest speaker for the "Wealth and Investment Management" panel session (“the Session”).

The Session was moderated by Vladimir Potapov, Senior Vice President of VTB Bank and Chief Executive Officer of VTB Capital Investments. Mr. Xu, along with Deputy Governor of the Bank of Russia Alexey Zabotkin, Chief Executive Officer of Moscow Exchange Yury Denisov, Global CIO Equity of Allianz Global Investors Virginia Maisonneuve, and Global Head of Emerging Markets of Amundi Yerlan Syzdykov, shared views on the influence of individual investors on capital markets, global market prospects, and key investment trends.

When talking about new changes in investor structure, Mr. Xu commented that, compared to individual investors, institutional investors are more experienced in managing investment risks and constructing investment framework. He added trends in China are individuals turning to institutions as fund raising by mutual funds has reached a historical record recently. He also stressed, “Capital markets allow investors to share the wealth created by competitive companies and emerging industries, but there are also great challenges, especially in managing a global portfolio. That is why we believe investors would need the help from professional institutions such as VTB and CICC. CICC hopes to work closely with partners like VTB to provide more innovative and sustainable solutions to more people around the world.”

With respect to ESG and its impacts on capital markets and companies with ESG components, Mr. Xu noted that investors globally, in China as well, are paying ever more attention to ESG and particularly carbon neutrality. He explained that ESG is a vary space with many long and complex value chains, emerging technologies and business models. Companies should not be labeled based on over-simplified categories as any traditional energy companies are making major investments into alternative energies and other related areas to transform themselves, he added. Given the fact that the long-term trend is clear while short-term movements are hard to tell, he advised investors to turn to investment professionals for help.

On the subject of regulator’s protection for retail investors, Mr. Xu highlighted that Chinese regulator has always put retail investor protection as a top priority in China. One key pillar is investor suitability and risk rating mechanism, where only investors who satisfy certain thresholds in terms of experience and risk taking capabilities can have access to higher risk products. When asked about views on hedges against inflation such as gold, he pointed out that a well-balanced portfolio, both in terms of asset classes and geography, may be a better long-term solution, such as FOF. He also noted that carbon is an interesting new asset class to watch.