Core Viewpoint - The banking wealth management industry is undergoing a valuation rectification process, which aims to eliminate irregular valuation methods and enhance market transparency [1][4][5]. Group 1: Valuation Rectification Progress - Financial regulatory authorities have set a deadline for wealth management companies to complete rectification by the end of this year, with many companies reporting that they have completed over half of their tasks [2][3]. - Some companies, particularly in southern China, have already completed their rectification efforts as early as last year [2]. - The focus of the rectification is primarily on the closing price valuation method, which is used for trading bonds on exchanges [2][3]. Group 2: Impact on Market Dynamics - The rectification process is expected to increase the volatility of wealth management product net values, as companies will no longer use smoothing methods to adjust net value fluctuations [1][6]. - The average annualized yield of open-ended fixed-income wealth management products has decreased to 2.84% as of the end of May, reflecting the impact of the rectification [6]. - The number of low-volatility, stable wealth management products is likely to decrease, while the proportion of mixed wealth management products may rise [6]. Group 3: Future Focus and Strategy - Post-rectification, wealth management companies will need to enhance their research and asset allocation capabilities to better manage net value fluctuations [7]. - Companies are advised to optimize their underlying asset allocation structure and improve their research capabilities in equity assets to balance market opportunities and volatility control [7].