Core Viewpoint - The article discusses the recent adjustments in the bank wealth management market following the People's Bank of China's announcement of a reserve requirement ratio and interest rate cuts, leading to a downward trend in performance benchmarks for various wealth management products [2][4][5]. Summary by Sections Adjustment of Performance Benchmarks - Several banks, including Dongguan Rural Commercial Bank and Tangshan Bank, have announced reductions in the performance benchmarks of their wealth management products, with some adjustments exceeding 100 basis points and lower limits falling below 2% [2][4]. - As of May 12, 150 bank wealth management products have adjusted their performance benchmarks since May 7, reflecting a rapid response to market interest rate changes [5][6]. Impact of Interest Rate Cuts - Following the interest rate cuts, many small and medium-sized banks have lowered their deposit rates, with some long-term fixed deposit rates dropping below 2%, indicating a shift into the "1% era" for most [6][7]. - The adjustments in deposit rates are expected to impact the performance of bank wealth management products, with analysts predicting further reductions in benchmarks [8]. Market Conditions and Challenges - The bank wealth management market, with a total scale of approximately 30 trillion yuan, is facing challenges in a "low interest rate, low spread, and high volatility" environment, leading to a decline in the scale of wealth management products by 0.81 trillion yuan in the first quarter [10][11]. - Analysts note that the decline in wealth management scale is seasonal, with significant growth typically occurring in the second and third quarters [10]. Structural Obstacles and Future Trends - There are structural obstacles to the further development of bank wealth management, including the low-risk nature of many products and the reliance on fixed-income assets, which limits active management opportunities [11][12]. - Long-term, wealth management subsidiaries are expected to diversify their product offerings and increase risk budgets to enhance returns, with a focus on high-yield assets and alternative strategies [12]. Fee Reduction Initiatives - In response to the adjustments in performance benchmarks, several wealth management companies have initiated fee reductions for their products to maintain customer relationships, with some companies announcing temporary fee cuts [13].