Industrial Securities Asset Management Co., Ltd., the wholly-owned asset management subsidiary of Industrial Securities Co., Ltd., announced a significant leadership change on April 11. Chairman Liu Yu has stepped down due to personnel adjustments, less than 11 months after assuming the role.
His successor, Wang Huanzhou, joins from Huafu Securities, where he served as Chief Investment Officer. Wang is a seasoned professional with over 16 years of investment management experience, particularly in fixed income and derivatives. Accompanying him is Chen Yi, former General Manager of the Institutional Business Department at Huafu Securities, who has been appointed as Vice President of Industrial Securities Asset Management. This transition occurs as company President Yang Hua has just completed his first year in the role, indicating frequent changes among core executives.
Amid these leadership adjustments, the company's performance has shown recovery. In 2025, its assets under management grew by 26% year-on-year to 127.2 billion yuan, signaling a gradual rebound from the post-regulatory reform transition period. Revenue reached 274 million yuan, with net profit at 69 million yuan, representing increases of 66.06% and 666.67%, respectively.
However, this high growth follows a low base. Compared to both its own peak performance and other securities asset management firms, the company still lags significantly. Moreover, the public fund license obtained in 2023 has yet to make a substantial impact—non-monetary funds account for less than 20% of the total public fund scale.
Liu Yu's tenure as chairman was relatively brief. He assumed the position on May 20, 2025, succeeding Sun Guoxiong, who retired, and served until April 10, 2026—just over 10 months. The company cited "normal personnel adjustments" as the reason for his departure and expressed gratitude for his contributions to strategic development and operational efficiency.
Liu's career is notably diverse. Holding a postgraduate degree and a doctorate in management, he is a senior accountant who began his career as a partner at Shandong Huide Accounting Firm. He later served as Deputy Director of the Finance Department at the Shanghai Stock Exchange and held leadership roles at Tibet Jinkong Fund Management Co., Ltd. and as CFO and Board Secretary of a pre-IPO company.
Since February 2019, Liu had been Executive Director and President of Industrial Securities Investment Management Co., Ltd., an alternative investment subsidiary of Industrial Securities. In May 2025, he was transferred to Industrial Securities Asset Management as Party Committee Secretary and Chairman. Insiders suggest he may return to his previous role following this departure.
Wang Huanzhou, the new chairman, is a graduate of Xiamen University's School of Economics and a veteran of the securities industry, having worked at Citic Securities Company Limited, Guotai Junan Securities, Aijian Trust, and Huafu Securities.
Prior to joining Industrial Securities Asset Management, Wang was Chief Investment Officer and Head of the Shanghai Proprietary Business Division at Huafu Securities, reflecting his background in proprietary investment.
The company highlighted Wang's extensive experience in institutional proprietary investment and client-driven businesses, particularly in fixed income, multi-asset investments, and derivatives. He has managed large-scale fixed income and multi-asset portfolios and serves as a member of the Fifth Financial Derivatives Expert Committee of the National Association of Financial Market Institutional Investors. He also temporarily acts as compliance officer for public fund management business.
Chen Yi, who joined alongside Wang, previously served as General Manager of the Institutional Business Department at Huafu Securities and is now Vice President. According to the Securities Association of China, both Wang and Chen completed their practitioner registrations on March 31, while Liu Yu is no longer listed with the company.
Industrial Securities Asset Management currently has five senior executives, four of whom have been appointed since 2025. Yang Hua was promoted from Vice President to President on March 28, 2025, completing one year in the role. On the same day, Zheng Fangbiao was promoted from Assistant President to Vice President.
On February 27, 2026, industry veteran Weng Jianguo joined as Vice President and assumed the roles of Compliance Officer and Chief Risk Officer a week later, holding three positions concurrently. His predecessor, Song Lin, left after just one year in the role.
With Chen Yi's appointment on April 10, 2026, the core management team has undergone an almost complete overhaul within the past year. On the board of directors, aside from Chairman Wang Huanzhou, the four non-independent directors all have backgrounds at Industrial Securities.
Industrial Securities Asset Management, headquartered in Shanghai, was originally the asset management department of Industrial Securities before becoming an independent entity in June 2014. It was approved to conduct asset management business in 2020 and obtained a public fund management license in November 2023, making it one of the few securities asset management firms with such qualifications.
Its product portfolio mainly includes collective plans, special plans, and public funds. According to its website, it offers 164 collective plans, over 60% of which are fixed-income products, and 198 special plans (ABS). The company operates under a "private + public" dual-driven model, with a focus on "fixed income + multi-asset" strategies.
Apart from public funds, data on the scale and returns of the other two product types are limited. Public information indicates that asset-backed securities (ABS) business is the company's strongest and largest contributor. It has pioneered several innovative projects in this field, issuing 14 ABS plans totaling approximately 15 billion yuan as early as 2017.
Since the introduction of new asset management regulations in 2018, securities asset management firms have faced significant challenges, particularly due to the phasing out of channel business and non-standard asset dependencies, forcing the industry to refocus on active management. During this transition, overall scale in the sector contracted sharply.
By the end of 2018, Industrial Securities Asset Management's AUM had fallen to 93.88 billion yuan, down 8% year-on-year from previous highs. It continued to decline over the next two years, dropping to 57.5 billion yuan by 2020.
Under the new rules, existing "large collective" products—originally私募 but with low thresholds and public promotion—had to be aligned with public fund standards. In April 2020, "Industrial Securities Asset Management Golden Kylin Leading Advantage One-Year Holding" became the first product to undergo this transformation, with several others following in 2021-2022.
As of the first quarter of 2026, the company managed 12 public fund products, only two of which were launched after obtaining the public fund license in 2023. The rest were transformed from earlier products, with total net assets of 8.124 billion yuan, up 25.61% year-on-year. Notably, the money market fund "Industrial Securities Asset Management Golden Kylin Cash Increment" alone accounted for 6.822 billion yuan, or 84% of the total fund scale, while the other 11 non-monetary funds remained relatively small, comprising less than 20% collectively.
After 2021, as the company completed the transformation of large collective products and adapted to new regulations, its AUM began to recover, surpassing 100 billion yuan again by 2024. By the end of 2025, AUM reached 127.2 billion yuan, a 26% year-on-year increase.
It is worth noting that in December 2024, the company was penalized by the Fujian Regulatory Bureau of the China Securities Regulatory Commission for violations in its private asset management business. These included facilitating bank wealth management products to circumvent regulatory requirements, inadequate management of bond pools, shortcomings in equity investment management, and incomplete disclosures for certain single asset management products.
These violations suggest lingering practices from old business models, such as disguised channel services, and highlight gaps in investment, trading, and risk control capabilities during the transition to active management.
Driven by scale growth, the company's performance improved in 2025, with revenue rising 66.06% to 274 million yuan and net profit surging 666.67% to 69 million yuan.
According to industrial economist Zhi Peiyuan, the securities asset management industry has faced dual pressures of "de-channelization" and "public fund transformation" in recent years, leading to widespread challenges in AUM, revenue, and profitability. In 2025, the sector showed signs of "scale recovery but performance divergence," with fixed-income products gaining competitiveness amid favorable policies and market conditions. However, long-term challenges require innovation and efficiency improvements.
Although Industrial Securities Asset Management achieved significant growth in revenue and profit, it started from a low base. Compared to its peak performance—over 300 million yuan in revenue and 100 million yuan in net profit—it still trails, and its results remain modest among peers. Among 14 securities asset management firms that disclosed 2025 results, it ranked second-last in revenue and fourth-last in net profit.
In summary, while Industrial Securities Asset Management demonstrated notable growth in AUM, revenue, and net profit in 2025, its overall profitability remains relatively low. With a largely renewed senior management team, it remains to be seen whether the new leadership can sustain this growth, surpass historical peaks, and enhance the company's competitive standing in the industry.
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