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“The world general situation matches the long dividing necessarily, dividing the long matching necessarily.” The Chinese assets management industry in 2014 can be described by the famous quotes in the Chinese classics Romance of Three Kingdoms. Investment banks vs. Assets management, Assets management vs. Wealth management, credit vs. equity, commercial banks vs. investment banks, finance vs. internet, buy-side vs. sell-side; they are all transiting from segregation operation to integration operation. Trans-boundary——the key word of this new era, has also become the essential capability for asset management professionals who can always perfectly adjust themselves under the new normal of China’s economy.

Look back at the year of 2014, Chinese economic growth slowed down, along with tightened local fiscal policy and eased monetary policy. The accumulation of credit risk from the economy kept banks from lending, which also leads to the decline of off-balance sheet lending. The traditional lending business is losing the function of revitalizing economy. Meanwhile, the capital market has become the main battlefield of industry. The bull market of A-share since last July made Chinese stock market the world second largest stock market, investors and asset management institutions has made considerable profits through this stock rally with 50% increase.

Behind the fast conversion of asset allocation from bond market to stock market, we can see the dilemma of anemic economy and asset surplus, the rise of new industries such as “Internet +”, as well as many reforms such as the marketization of interest rate, FX rate, and the market-reform of regulators and financial institutions.

So it makes request to asset management industry to enhancing the investment ability, embracing capital market and innovating the investment methods, thus to better support economy and create excess return for investors during the sagging interest rate cycle.

Based on those reasons, assets management institutions need more trans-border cooperation, thus to reconstruct industrial chain, using resources and comparative advantages wisely to achieve more efficient and market-oriented resource allocation. However, trans-boundary does not equal to “no boundary”, professionalism should be maintained when the comprehensive operation is carried out on the company level.

Looking into the future, in the process of industrial chain reconstitution and market pattern remodeling, the law of Natural selection request all asset management professionals to gain ability in assets discovering, risk pricing and marketing. It also requests the regulators to implement functional supervision so that the regulated financial innovation can go much further with the rise of Chinese economy and capital market.