Core Viewpoint - The banking wealth management industry is entering a true net value era, leading to a transformation in distribution channels, with a focus on expanding sales through local rural commercial banks as a strategic move to tap into the underdeveloped market [1][2][3] Group 1: Market Dynamics - The competition in the wealth management market is intensifying, prompting companies to target the relatively untapped "blue ocean" of local rural commercial banks [1][3] - The total asset scale of rural financial institutions in China is approximately 60.16 trillion yuan, accounting for 12.9% of the total assets of banking financial institutions, indicating a significant growth potential in this sector [3] - The increasing income levels and rising wealth management awareness among residents in third and fourth-tier cities and county areas are driving demand for wealth management products [3][4] Group 2: Strategic Partnerships - Numerous wealth management companies, including Xinyin Wealth Management and Beiyin Wealth Management, have announced partnerships with rural commercial banks to expand their distribution networks [2][3] - Local rural commercial banks are seen as advantageous partners due to their localized customer base and ability to reach areas with insufficient coverage from larger banks [4][5] - The collaboration allows wealth management companies to diversify their product offerings and enhance customer retention for rural banks [4][5] Group 3: Product and Service Adaptation - Wealth management companies are tailoring their product offerings based on local customer preferences, focusing on low-risk fixed-income products for rural bank clients [6] - The shift from simple product distribution to a more integrated "distribution + empowerment" model is necessary for wealth management companies to address regional market differences and enhance service delivery [6] - Companies are encouraged to develop customized products that cater to the unique characteristics of different regions, facilitating differentiated competition [6]

Core Insights - The collaboration between bank wealth management subsidiaries and local small and medium-sized banks has been increasing throughout the year, with several wealth management subsidiaries accelerating their efforts to expand distribution channels and business scope [1][4] - Experts suggest that the current collaboration is primarily at a basic level, where banks act as distribution platforms for wealth management products, but future developments may lead to a more integrated "distribution + empowerment" model [1][4] Distribution Cooperation Expansion - Agricultural Bank Wealth Management announced a partnership with Dongguan Rural Commercial Bank for the distribution of its wealth management products on August 14 [1] - Bank of China Wealth Management has signed distribution agreements with Guangxi Beibu Gulf Bank, Gansu Bank, and Inner Mongolia Bank in recent months to expand its sales channels [1] - North Bank Wealth Management has also been active, signing multiple distribution agreements with various rural commercial banks in Zhejiang province [2] Industry Data Trends - According to the China Banking Wealth Management Registration and Custody Center, as of June 2025, only 2 out of 32 wealth management subsidiaries rely solely on their parent banks for product distribution, while 30 have opened additional distribution channels [3] - The number of institutions distributing wealth management products has slightly increased, with 569 institutions involved by mid-2025, up by 7 from the beginning of the year [3] Shift to "Distribution + Empowerment" Model - The trend of wealth management subsidiaries partnering with local small and medium-sized banks is driven by mutual needs: wealth management subsidiaries seek to enhance market share, while small banks need to transform their wealth management business due to regulatory pressures [4][5] - The collaboration is expected to yield multiple benefits, such as improving non-interest income for small banks and expanding sales scale for wealth management subsidiaries [4][5] Future Collaboration Directions - Future collaborations are anticipated to focus on three main areas: optimizing customer management through digital tools, joint product innovation tailored to regional needs, and enhancing risk control capabilities [6] - The market is expected to see intensified distribution channel penetration into lower-tier cities and a shift towards deeper collaboration models that promote industry specialization [5][6]

Core Viewpoint - The collaboration between bank wealth management subsidiaries and local small and medium-sized banks is intensifying, with a shift from simple distribution to a deeper "distribution + empowerment" model expected in the future [1][4]. Group 1: Expansion of Distribution Partnerships - Several wealth management subsidiaries, including Agricultural Bank of China Wealth Management, Bank of China Wealth Management, and Beijing Wealth Management, have established distribution partnerships with local small and medium-sized banks this year [1][2]. - Agricultural Bank of China Wealth Management signed a contract with Dongguan Rural Commercial Bank for the distribution of its wealth management products [2]. - Bank of China Wealth Management has entered into distribution agreements with multiple banks, including Guangxi Beibu Gulf Bank and Gansu Bank, to expand its sales channels [2][3]. - Beijing Wealth Management has also been active in forming distribution partnerships, signing agreements with several rural commercial banks in Zhejiang province [2]. Group 2: Industry Trends and Data - A report from the China Banking Wealth Management Registration and Custody Center indicates that as of mid-2025, only 2 out of 32 wealth management subsidiaries rely solely on their parent banks for product distribution, while the remaining 30 have opened up to other banks [3]. - By June 2025, a total of 569 institutions were involved in distributing wealth management products from subsidiaries, an increase of 7 institutions since the beginning of the year [3]. Group 3: Future Collaboration Directions - The collaboration between wealth management subsidiaries and local banks is driven by mutual needs: wealth management subsidiaries seek to enhance market share through local banks, while local banks need to transform their wealth management business due to regulatory pressures [4][5]. - The future landscape of the wealth management market is expected to see intensified distribution channel penetration into lower-tier cities and county-level financial institutions [5]. - The collaboration is anticipated to evolve into a more integrated model, focusing on customer management, product innovation, and risk control [6].