Foresight in financial management | Insight into the secrets of global investmen
2024-08-12
136 CommentsThe global economy has ushered in a new stage of development in the post-pandemic era. According to the April report of the "World Economic Outlook," the world economy will continue to grow at a rate of 3.2% in 2024 and 2025, with the economic growth rate of developed economies slightly accelerating, reflecting the steady recovery of international trade and investment.
I. Looking at the trend from a domestic perspective, seeking opportunities in multi-currency assets
With the acceleration of the internationalization of the renminbi and the continuous deepening of financial market cooperation, the demand of Chinese investors for multi-currency asset allocation has shown a significant growth trend. According to the latest data from the State Administration of Foreign Exchange, the cross-border capital flow in the first quarter of 2024 showed a slight net inflow trend, which is closely related to the accelerated advancement of globalization and the frequent international exchanges. On the one hand, the growth of life needs such as tourism, study abroad, and overseas consumption has promoted the popularization and increased demand for foreign currency circulation in the country. On the other hand, investors are also actively seeking diversified investment channels and the dispersed allocation of assets to adapt to the new changes in the market.
In this environment, investors are increasingly focusing on the broad prospects of cross-border investment, striving to capture potential investment opportunities in different markets through exquisite investment strategies, and strengthening the safety margin and value-added potential of assets. Therefore, using investment tools in multiple currencies to achieve global asset allocation and maximize efficiency has become a choice for investors to cope with changes in the financial market.
II. Focusing on the advantages of financial management, empowering asset wisdom to increase value
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Against the background of this trend, foreign currency investment has become an important choice for many investors. At present, the main ways for individuals in our country to invest in foreign exchange include foreign currency deposits, foreign currency financial products, QDII products, and personal foreign exchange transactions, etc. Among them, foreign currency financial products are favored by a large number of investors due to their relatively short term and higher returns compared to foreign currency savings deposits. According to the latest data from Puyi Standard, as of the end of May 2024, the net value of financial products with foreign currency [2] has reached 197.456 billion yuan, a month-on-month increase of 4.72%, showing a strong upward momentum; at the same time, the number of products at the end of May also increased by 3.79% to 1260, further verifying the popularity of foreign currency financial products in the market [3]. Looking at the operation mode, the existing foreign currency financial products are mainly fixed income products, accounting for about 75.57% of the existing scale; followed by cash management products, accounting for about 18.74% of the existing scale.
The advantages of foreign currency financial products can be further elaborated from the following dimensions:
1. Global allocation: Foreign currency financial products provide asset allocation options across currencies and regions, which can effectively diversify risks and build a stable investment portfolio.2. Higher overseas market interest rates: The current level of overseas market interest rates remains high, and foreign currency financial products can offer relatively stable returns. Of course, investors also need to consider the potential interest rate risks when choosing foreign currency financial products.
3. Exchange rate risk hedging: For investors with overseas travel, study abroad, or education expenditure needs, or those holding foreign currency assets, foreign currency financial products serve as an effective hedging tool. This helps to mitigate potential risks that may arise from exchange rate fluctuations, thereby maintaining the stability of asset values to a certain extent.
III. Strategic linkages to open up new situations, professional services to ensure steady progress
Foreign currency financial management has become an important field that major financial management companies are competing to lay out. In this wave, joint venture financial management companies, with the deep accumulation of foreign capital in the global investment field and the precise grasp of the Chinese market by local partners, have provided customers with a rich and extensive matrix of financial products, precisely meeting the growing diversified needs of investors in global asset allocation.
Taking BlackRock-CCB Wealth Management as an example, based on the close tracking of global macroeconomic indicators and monetary fiscal policies, combined with the trend of market interest rate changes and the mainstream expectations of market participants, it has built the "Beyuan US Dollar Fixed Income Product Series" around investor needs. In terms of product form, in addition to closed-end and fixed-opening products, BlackRock-CCB Wealth Management has recently launched the "Beyuan Daily Open Product." The Beyuan Daily Open Product, with high liquidity as its core feature, has built a relatively ideal allocation channel for investors who hold foreign currency assets and pursue capital flexibility, or those who plan to enter the foreign currency market and carefully control risks with a diversified investment portfolio. By investing in this product, investors can not only enjoy a global investment perspective but also continuously expand diversified configurations and explore potential investment opportunities.
IV. The dawn of a new journey, painting a new chapter with a fresh start
The field of cross-border asset allocation and foreign currency financial management continues to thrive, paving a broad growth path for the financial management industry. As an active participant in this field, financial management institutions should actively embrace market changes and firmly grasp development opportunities. On the one hand, they should continue to strengthen the cooperation ties with international partners, quickly capture international market trends, integrate global investment opportunities into the domestic market, and provide investors with more diversified asset allocation solutions. On the other hand, they should deeply absorb the wisdom of overseas mature asset management, carefully plan a stable multi-currency financial product combination strategy, empower investors to deeply understand the essence of asset allocation, and build a rational investment strategy and a solid risk control framework. At the same time, financial management institutions should continuously improve their service level and professional strength, strive to create an excellent investment journey and comprehensive service protection for each investor, and jointly draw a new blueprint for wealth appreciation.