Core Insights - The overall scale of the wealth management market in China reached 30.67 trillion yuan by the end of June 2025, reflecting a 2.38% increase from the beginning of the year and a 7.53% year-on-year growth [1] - A total of 16,300 new wealth management products were issued in the first half of the year, raising 36.72 trillion yuan in funds [1] Group 1: Market Performance - The average annualized yield of wealth management products was 2.12% in the first half of 2025, down from 2.65% for the entire previous year [3] - Wealth management products generated a total return of 389.6 billion yuan for investors in the first half of 2025, representing a 14.18% increase compared to the same period last year [3] - Fixed income products remain dominant, accounting for 97.2% of the total scale of wealth management products by the end of June, an increase of 0.32 percentage points year-on-year [2] Group 2: Investor Trends - The number of investors holding wealth management products reached 136 million by the end of June 2025, an increase of 8.37% from the beginning of the year [4] - Among individual investors, the proportion of those with a risk preference of level 5 (aggressive) increased by 1.25 percentage points compared to the same period last year [6] - The Financial Regulatory Authority has introduced new guidelines for financial institutions to ensure appropriate product sales to suitable clients, effective from February 1, 2026 [6]

Core Insights - The scale of bank wealth management products has exceeded 31 trillion yuan this year, with expectations to reach 33 trillion yuan by year-end due to declining deposit rates and increased demand from corporate clients [1][2][4] Group 1: Market Growth - The bank wealth management market has seen significant expansion, driven primarily by corporate demand, as businesses shift funds from lower-yielding deposits to higher-yielding wealth management products [2][3] - The transition of funds from deposits to wealth management products is expected to continue as deposit rates decline, providing a long-term growth momentum for the market [2][4] Group 2: Corporate Demand - Corporate clients exhibit explosive growth in demand for wealth management products, primarily due to the immediate adjustment of corporate deposit rates, which encourages a shift to higher-yielding options [2][3] - The core requirements of corporate clients focus on safety and liquidity, with a preference for wealth management products that primarily invest in high-security assets like interbank certificates of deposit [2] Group 3: Pricing Strategy - Wealth management companies are now using interbank deposit rates as a pricing anchor, adjusting yields to maintain attractiveness amid declining deposit rates [3][4] - The typical interbank deposit rate is currently around 1.45%, with comparable wealth management products offering pre-fee yields of approximately 1.85% and post-fee yields around 1.65% [3] Group 4: Challenges in Yield Maintenance - The decline in deposit rates presents challenges for wealth management companies in meeting yield targets, as the narrowing of term and credit spreads reduces the yield advantage of wealth management products over deposits [4][5] - Investors are increasingly focused on achieving performance benchmarks rather than seeking excess returns, complicating the yield maintenance for wealth management products [4] Group 5: Strategic Adjustments - In response to market conditions, wealth management companies are adjusting strategies to identify low-volatility, stable assets, including high-yield non-standard assets and bond funds [5] - The rapid growth of short-term bond wealth management products is notable, but they face significant risks if the bond market adjusts, highlighting the need for diversification in asset classes to sustain returns [5]

Core Viewpoint - The April wealth management market saw a slight decline in the number of newly issued products, but the issuance of rights-containing wealth management products accelerated again, indicating a shift in investor preference towards mixed and equity products as fixed-income yields continue to decline [1][3][5]. Group 1: Market Performance - In April, the number of newly issued mixed products increased by 42% month-on-month, totaling 81 products [1]. - The total scale of bank wealth management rose by 2.1 trillion yuan to 31.3 trillion yuan, marking a month-on-month increase of 7.35% and a year-on-year increase of 6.83% [5][6]. - The annualized yield of closed fixed-income products rose by 1.94 percentage points to 3.69% over the past month [1][6]. Group 2: Product Issuance - In April, 4,605 new RMB wealth management products were issued, a slight decrease of 143 products from March [2]. - Fixed-income products accounted for over 96% of the newly issued products, with 4,507 products primarily investing in interbank certificates of deposit, bank deposits, and bonds [2]. - The issuance of mixed wealth management products continued to rise, with 81 new products launched, an increase of 24 products month-on-month [2]. Group 3: Performance Metrics - The average performance benchmark for newly issued open-ended wealth management products was 2.11%, down 0.03 percentage points month-on-month, while closed products averaged 2.66%, down 0.1 percentage points [3][4]. - The average performance benchmark for closed mixed and equity products rose to 2.77% and 6.00%, respectively, with increases of 0.11 and 2.16 percentage points [4]. Group 4: Market Drivers - The increase in wealth management scale is attributed to seasonal factors, with April being a traditional peak season for wealth management, and a recovery in the bond market leading to improved fixed-income product yields [5][6]. - The decline in deposit rates has made wealth management products more attractive, potentially driving further growth in the sector [7].