Core Viewpoint - The article highlights the phenomenon of "yield illusion" in financial products, where high initial annualized returns attract investors, but actual returns decline significantly over time, raising concerns about the authenticity of net asset values and the potential for "bad money driving out good" in the industry [2][7][10]. Group 1: Yield Trends - Many newly launched financial products exhibit a "high then low" yield curve, with initial annualized returns often exceeding 3%, but actual returns dropping below 2% shortly after [5][6]. - As of September 2025, the weighted average annualized return for bank wealth management products was only 1.68%, indicating a shift into the "1% era" for overall yield levels [10][11]. - Over 130 out of 177 products launched since August 2025, which initially boasted annualized returns over 10%, have seen their yields decline in the following month [5][6]. Group 2: Yield Manipulation Techniques - Financial institutions are employing "yield shifting" techniques, where high-yield assets are concentrated during the product's initial phase to inflate net asset values and attract investors, followed by a gradual return to normal yield levels [7][9]. - The practice of issuing numerous similar products allows companies to create a "shell" effect, where new products are specifically designed to boost performance rankings [8][11]. - The T-1 valuation arbitrage method has emerged as a new strategy, allowing companies to transfer value between new and old products, effectively manipulating perceived returns [9][10]. Group 3: Market Implications - The competitive landscape in the wealth management market has intensified, leading to a cycle where firms feel pressured to inflate product yields to maintain market position [12][13]. - Investors in older products may unknowingly have their potential returns shifted to newer, higher-yield products, leading to dissatisfaction and potential complaints [13]. - The reliance on yield manipulation may hinder genuine investment research and asset allocation efforts, ultimately affecting the industry's long-term quality and stability [12][13].

Core Viewpoint - The article discusses the phenomenon of "yield illusion" in financial products, where high initial annualized returns attract investors, but actual returns decline significantly over time, revealing a potential manipulation of reported yields [1][3]. Group 1: Yield Trends - Many financial products marketed as "high-yield" show a pattern of high initial returns followed by significant declines, with over 130 out of 177 products launched since August 2025 experiencing a drop in annualized returns [5][9]. - The average annualized yield for bank wealth management products fell to 1.68% in September 2025, indicating a shift into the "1% era" for overall yield levels [19][20]. Group 2: Mechanisms of Yield Manipulation - Financial institutions employ strategies such as "yield transfer" by initially injecting high-yield assets during the product's establishment phase to inflate net value and attract investors, followed by a gradual return to normal yield levels [12][13]. - The introduction of T-1 valuation arbitrage allows institutions to manipulate reported yields by using previous day's net asset values for transactions, effectively transferring value between new and existing products [15][16][17]. Group 3: Industry Implications - The competitive pressure in the wealth management market leads institutions to rely on "high-yield" products to attract clients, which may result in a cycle of yield manipulation that undermines genuine investment research and compliance [21][22]. - The reliance on yield manipulation techniques can distort market expectations for risk-free rates and may encourage short-term trading behaviors among investors, countering the need for stable long-term capital in the market [22].