Noah Holdings
Q1 2022 Earnings Call
May 11, 2022, 8:00 p.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Hello, and welcome to the Noah Holdings 1Q 2022 earnings conference call. [Operator instructions] I would now like to turn the conference over to Jingbo Wang, chief executive officer. Please go ahead.
Jingbo Wang -- Chief Executive Officer
[Foreign language] On the agenda of today's conference, I would like to talk about the micro view first, and then report on the overall performance of Noah Holdings in the first quarter of 2022 and the development of main business segments. Then let's invite our CFO, Mr. Qing Pan, to introduce the quarterly financial information, followed by an interactive Q&A. At the beginning of 2022, Noah and Noah's clients, finished on a risk-off mode.
Noah's clients, relationship managers, and investment managers, They have never experienced a complete multi-sector, superposition cycle of continuous hikes in interest rates, credit expansion aka quantitative easing, liquidity collapse, and massive excess credit. At the beginning of 2022, we realized that in a strong headwind, aviation will be a challenge. In the first quarter of 2022, we talked with relationship managers and clients repeatedly and emphasized that no one was trampled. When entering the theater, many people were trampled when they came out.
In the first quarter of 2022, we suggest that Noah's clients reexamine the asset allocation of themselves and their families, actively rebalance the asset allocation, and make the family asset allocation safer and more effective from the perspective of protection over growth. The ongoing war between Russia and Ukraine is worrying. But as a professional institution of wealth management, we suggest that our clients should remain rational. Under this dilemma, the only certainty is that the market will continue to fluctuate.
This market environment is not suitable for "timid" fund managers and clients. Avoiding risk had become a better choice. At the beginning of the new year, Noah's allocation strategy to clients is protection first, then grow. Since the subprime mortgage crisis in 2008, the global long-term quantitative easing policy and abundant liquidity have caused the huge inflation of risky assets as that inflation has penetrated into every corner of the world.
The reversal of quantitative easing policy has come. And the Federal Reserve and other countries have started multiple interest rate increase cycles. For asset prices, the shift from quantitative easing to quantitative tightening will be a challenging adjustment, and the rapid withdrawal of liquidity will turn asset inflation into asset deflation. In 2021, many industries in China were subject to strict supervision and frequent policy changes, which led to fundamental changes in the valuation logic of these industries.