Guide capital towards technological innovation; public fund institutions focus on enhancing investors' sense of gain

Author: Chang Xiaoyu, Fang Lingchen

On March 6, at the Fourth Session of the 14th National People’s Congress, during the economic-themed press conference, China Securities Regulatory Commission Chairman Wu Qing addressed hot topics such as high-quality development of the capital market, better service for technological innovation and new productive forces, risk prevention, and strengthened regulation to respond to market concerns.

In response, many public fund institutions stated that they will adhere to long-termism and professionalism, actively guide financial “fresh water” into the field of technological innovation. At the same time, they will always prioritize investors’ interests, enhancing investors’ sense of gain through sustainable performance and high-quality services.

Guiding Financial “Fresh Water”

Precisely Flowing to Technological Innovation

In recent years, a new round of technological revolution and industrial transformation has accelerated, with major global capital markets actively reforming to adapt to innovation development trends. Wu Qing said: “From China’s actual situation, whether it is cultivating and expanding emerging industries, proactively planning for future industries, or innovating and greening and intelligent transforming traditional industries, it is necessary to further leverage the functions of the capital market and accelerate the integration of technological and industrial innovation. The development of new productive forces will support higher-quality development of the capital market and bring better, sustained returns to investors.”

“Technological innovation is the core element of developing new productive forces. Tech innovation companies often have characteristics such as high investment, long cycles, and high operational uncertainty, and their valuation logic differs from traditional valuation systems,” said E Fund. They will continue to strengthen core investment research capabilities, optimize and iterate the research system, expand the breadth and depth of research into new industries, new business models, and new technologies, improve research and valuation capabilities for tech innovation companies, better play the roles of value discovery and resource allocation, and guide financial “fresh water” to key areas of technological innovation. This will serve the development of new productive forces more precisely and effectively, promote a virtuous cycle of “technology—industry—finance,” and help cultivate and expand new growth drivers.

Bosera Fund believes that industrial structure upgrading, especially technological innovation, will remain a key policy focus in the future. As an important force supporting China’s technological industry development, public funds can demonstrate the broad prospects of the tech industry through investment results, encouraging more capital to flow in.

“Huitianfu Fund always regards investment in the technology sector as a strategic priority, systematically building a research and investment system covering cutting-edge fields such as artificial intelligence, semiconductors, new energy, and biomedicine,” introduced Huitianfu Fund. They continue to strengthen their research team, deepen understanding of the laws of technological innovation and corporate growth paths, improve product layouts in related fields, optimize long-term assessment and constraint mechanisms, and strive to enhance the ability to serve medium- and long-term capital, bringing more financial resources to high-quality tech innovation companies.

Putting Investors’ Interests First

Always at the Forefront

Wu Qing emphasized that the development of the public fund industry should “deepen reform, guide public funds to adhere to long-termism and professionalism, uphold the principle that public funds serve the public, and always prioritize investors’ interests.”

According to China Merchants Fund, as an important vehicle for inclusive finance and a professional institutional investor in the capital market, public funds always uphold the fiduciary duty of “trust and loyalty,” playing a vital role in serving national strategies, maintaining market stability, and improving the quality and efficiency of direct financing.

Caitong Fund believes that the public fund industry has entered a new stage of high-quality development, which means the industry has shifted from traditional scale competition to a more comprehensive development focusing on corporate governance, research and development strength, and compliance and risk control.

Putting investors’ interests first has become a consensus among interviewed public fund institutions. E Fund stated: “We will always prioritize functionality, adhere to long-termism and professionalism, continuously improve product systems suitable for medium- and long-term funds, optimize our ability to serve such funds, and enhance investors’ sense of gain through sustainable performance and high-quality services. This will attract more patient capital into the market via public funds, help establish a ‘long-term money, long-term investment’ market mechanism and ecosystem, better serve the real economy and national strategies, and meet residents’ wealth management needs.”

Huitianfu Fund said: “In the future, Huitianfu will continuously improve investment management and asset allocation capabilities, actively practice rational, long-term, and value investing concepts, and leverage professional investment skills, stable product performance, and first-class customer service to excel in the ‘Five Major Articles’ of finance, contributing to residents’ wealth preservation and appreciation, promoting stable capital market operation, supporting the healthy development of the real economy, and building a strong financial nation.”

Bosera Fund added: “They will leverage new technologies like AI to enhance client interaction and asset allocation intelligence, continuously improve multi-asset pricing and allocation capabilities, and focus on supporting fields such as technological innovation, green transformation, and inclusive elderly care within the framework of the ‘Five Major Articles’ of finance. They will continue to integrate into the broader goal of building a strong financial nation, demonstrating the responsibility and action of asset management institutions in serving national development and reform of the capital market.”

Caitong Fund stated that they will focus closely on enhancing investors’ sense of gain, centering on clients, and implementing relevant policies thoroughly. China Merchants Fund said they will continue to optimize product offerings, strengthen research and development, reinforce compliance and risk control, improve customer service, and work alongside various medium- and long-term funds and the real economy, sharing results with investors, contributing to high-quality market development, and supporting China’s modernization with professional public fund strength.

(Edited by: Xu Nannan)

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