Core Viewpoint - The article discusses the phenomenon of "yield illusion" in wealth management products, where high annualized returns advertised (up to 10%) may not reflect the actual returns received by investors, which can be over 1 percentage point lower than expected [1][6]. Group 1: Yield Trends - Many wealth management products have shown a "high then low" yield curve, with over 130 out of 177 products launched since August experiencing a decline in annualized returns [5][10]. - A specific example includes a product with an initial annualized return of 9.67% that dropped to just 0.82% within a month, highlighting the volatility in returns [5][6]. - The average annualized return for bank wealth management products has decreased to 1.68% as of September 2025, indicating a shift into the "1% era" for returns [11]. Group 2: Industry Practices - Wealth management companies are employing "yield maneuvering" techniques, such as injecting high-yield assets during the product establishment phase to attract investors, followed by a gradual decline in returns [6][12]. - The practice of issuing numerous similar products to create a competitive edge, known as "shell raising," has become common, with 10,000 new products launched in the third quarter of 2025 alone [8][12]. - The T-1 valuation arbitrage method allows companies to manipulate returns by using previous day's net asset values for transactions, effectively redistributing profits between new and old products [9][12]. Group 3: Market Impact - The competitive nature of the wealth management market has led to a cycle where firms feel pressured to inflate returns, which can mislead investors and potentially lead to widespread complaints [13]. - The reliance on high-yield products may distort the true price discovery process in the market, pushing up risk-free interest rate expectations and encouraging short-term investment behaviors [13].

Core Viewpoint - The article highlights the existence of "financial assassins" in the banking wealth management sector, where investors are misled by high advertised returns but receive much lower actual returns due to manipulative practices by wealth management companies [1][14]. Group 1: Industry Practices - Wealth management companies are engaging in unfair competition by using T-1 valuation methods to shift returns between products, leading to discrepancies in actual returns received by investors [1][6]. - The practice of "sheltering" products allows companies to inflate the returns of newly launched products while older products bear the losses, creating an illusion of high performance [5][12]. - Regulatory measures have been implemented to curb previous practices like self-built valuation models, but companies continue to seek loopholes to maintain high returns [7][14]. Group 2: Investor Impact - Investors are often left with returns significantly lower than expected, with some reporting annualized returns as low as 1%-2% despite seeing advertised rates above 5% [1][14]. - The reliance on T-1 valuation creates a situation where investors in older products are unfairly treated, as their returns are used to support the performance of newer products [14][15]. - The high expectations set by advertised returns lead to a cycle of short-term investment behavior, undermining the potential for long-term value investment [15]. Group 3: Market Dynamics - The shift towards T-1 valuation methods has been driven by a combination of regulatory scrutiny and the need for wealth management firms to maintain competitive scales in a challenging market environment [7][8]. - The increasing reliance on trust products and the growing share of outsourced investments indicate a significant change in asset allocation strategies within the wealth management industry [8][9]. - The competitive landscape is becoming more challenging, with larger firms facing pressure to deliver returns while adhering to stricter compliance requirements [10][12].