After going through a period of adjustment, the current asset management industry has gradually entered a stage of high-quality development. Nowadays, asset management products are generally relatively prosperous. The 2020 asset management business statistics recently released by the China Asset Management Association show that as of the end of last year, the total asset management business scale of fund companies and their subsidiaries, securities companies, futures companies, and private equity fund management institutions reached approximately 58.99 trillion yuan. Compared with 52.23 trillion yuan at the end of 2019, it increased by 6.76 trillion yuan, an increase of about 13%. Benefitting from market conditions, the scale of public funds has grown the most, reaching 19.89 trillion yuan, accounting for 33.72%; followed by private equity funds with a scale of 16.96 trillion yuan, accounting for 28.75%.

The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange and other departments, have extended the transition period for the new asset management regulations to the end of 2021. The transformation of the asset management industry has entered a new turning point, especially For the increasingly popular public funds, it is necessary to continuously strengthen the construction of its own capabilities.

Cathay Yuanxin Asset believes that just as China’s economy is in the throes of transition from old to new driving forces, the main issues currently facing the fund asset management industry are: 1. Changes in national financial policies and regulatory environment, industry needs Time to adapt and digest; 2. Changes in the industry's ecological environment, the conversion of each company's business model requires time to adapt and settle; 3. The conversion of new and old business models, the company's governance structure, institutional processes and professional teams also need time to adjust and forging. Summarizing Cathay Yuanxin’s point of view: In the future, the fund asset management industry will eventually turn to connotative development, mainly through in-depth internal reforms to stimulate vitality, enhance strength, improve competitiveness, and achieve substantial progress in the process of quantitative change to qualitative change. Development by leaps and bounds.