Core Viewpoint - The asset management business of small and medium-sized banks without wealth management licenses is at a critical juncture, facing pressure to reduce their asset management scale by the end of 2026 due to regulatory requirements [2][4]. Group 1: Current Market Situation - As of mid-2025, the asset management scale of 69 small and medium-sized banks without wealth management licenses totaled approximately 1.35 trillion yuan, down about 7.75% from the end of 2024 [3]. - The overall asset management market in the banking sector has a total scale of 30.67 trillion yuan, with 3.19 trillion yuan still managed directly by the banks' headquarters [2]. Group 2: Regulatory Environment - The asset management new regulations introduced in 2018 require financial institutions without asset management as a main business to establish independent asset management subsidiaries [4]. - There is a clear trend of pressure to reduce the asset management scale at the headquarters of banks, particularly for those without wealth management licenses [4]. Group 3: Responses from Banks - Many banks are actively applying for wealth management licenses or transitioning to a distribution model for wealth management products [5][9]. - Some banks express concerns about the limited number of new licenses expected to be issued, indicating that larger institutions may have a better chance of obtaining them [3][9]. Group 4: Performance Variability - Among the 69 banks, 42 have seen their wealth management product scales decrease by over 5% in the first half of 2025, with 36 banks experiencing declines exceeding 10% [5]. - Notably, some banks have managed to increase their asset management scales, such as Harbin Bank with a growth of 7.29% and Shenzhen Rural Commercial Bank with a growth of 10.14% [7]. Group 5: Future Strategies - Smaller banks are expected to focus on enhancing their distribution systems for wealth management products, improving customer experience, and developing professional talent [11]. - Larger banks with stronger asset management capabilities will need to operate cautiously to avoid customer loss during the scale reduction process, while also preparing for potential future establishment of wealth management subsidiaries [12].