Core Viewpoint - The banking and wealth management industry is focusing on promoting existing wealth management products with attractive historical returns rather than launching new holiday-specific products for the upcoming festivals, reflecting a shift in investor preferences towards stable, low-risk options [1][2][3][4]. Group 1: Market Trends - This year, the market for holiday-specific wealth management products is notably subdued, with a preference for existing products that have demonstrated stable performance [2][3]. - Major banks and wealth management companies are increasing their marketing efforts for "holiday wealth management" themes, promoting products with shorter holding periods and lower risk levels [2][3][6]. - The trend indicates a maturation in the net value transformation of wealth management products, leading to more rational customer choices [3][4]. Group 2: Product Performance - Wealth management products being promoted have shown impressive historical returns, with some products achieving an annualized return of 12.01% over the past month and 7.43% since inception [1][6]. - For example, 工银理财 has introduced eight products for the National Day holiday, with one product showing an annualized return of 8.42% since inception [6]. - Compared to the average market performance, these recommended products exhibit a significant competitive advantage, with average annualized returns of 2.49% for existing open-ended fixed-income products and 1.28% for cash management products [7]. Group 3: Investor Behavior - Investors are increasingly focused on stable returns and low to medium-risk wealth management products, especially after experiencing several rounds of net value declines in the market [7]. - The lack of new holiday-specific products suggests that banks are prioritizing the promotion of existing products that can offer reliable returns during the holiday period [3][4][7].

Core Viewpoint - The banking and wealth management industry is shifting focus from holiday-specific financial products to existing products with stable historical returns, reflecting a more rational investment approach among clients [2][5][6]. Group 1: Market Trends - This year, the market for holiday-specific financial products is notably "cold," with a preference for existing financial products that have demonstrated stable performance [3][4]. - Major financial institutions, including Ping An Wealth Management and China Merchants Bank Wealth Management, are promoting "holiday wealth management" themes, emphasizing short-term products with low to medium risk [3][4]. Group 2: Product Performance - Several recommended financial products have shown impressive historical returns, with one product from ICBC achieving a monthly annualized return of 12.01% and a lifetime annualized return of 8.42% [6]. - Other products from Huayin Wealth Management and China Merchants Bank also reported strong performance, with annualized returns of 7.43% and 5.73% respectively [6][7]. Group 3: Investor Behavior - Investors are increasingly focused on stable, low-risk financial products due to previous market fluctuations and the transition to net value-based financial products [5][7]. - The average annualized return for existing open-ended fixed-income products is significantly lower than the returns of the promoted products, indicating a competitive advantage for these offerings [7].

Core Viewpoint - Minsheng Wealth Management has been approved to commence operations, increasing the number of approved wealth management subsidiaries under national joint-stock banks to nine [1][2]. Group 1: Company Developments - The China Banking and Insurance Regulatory Commission has granted approval for Minsheng Wealth Management to operate, following a year and a half of preparation since its establishment approval in December 2020 [2]. - Minsheng Wealth Management is the fourth bank wealth management subsidiary approved to operate this year, bringing the total number of approved subsidiaries to 26, with 29 banks having received establishment approval [2]. - The major banks, including state-owned and joint-stock banks, have been proactive in establishing wealth management subsidiaries, with all six major state-owned banks now operational [2]. Group 2: Market Trends - The A-share market's rebound has led to a noticeable recovery in the net value of bank wealth management products, with the number of "broken net" products dropping from 1,680 at the end of March to under 1,000 by June 19 [1][4]. - As of June 19, only 987 out of 13,298 disclosed bank wealth management products had a unit net value below 1, resulting in a "broken net" ratio of 7.42%, down from 14.77% in March [4]. - The issuance of bank wealth management products has stabilized, with 966 products issued in May, a slight decrease from the previous month, while the total number of products on sale increased by 140 to 2,746 [4]. Group 3: Financial Performance - The financial performance of wealth management subsidiaries has been strong, with 12 out of 17 publicly listed banks reporting a net profit increase exceeding 100% last year [3]. - Notably, Zhaoyin Wealth Management achieved a net profit of 3.203 billion yuan [3].

Core Viewpoint - The new interim measures for the sales management of wealth management products by wealth management companies will take effect on June 27, 2021, expanding the applicable scope from "wealth management subsidiaries" to "wealth management companies" and detailing 18 prohibitive regulations to promote the transformation of net value products and break the expectation of guaranteed returns [1][2][4]. Group 1: Applicable Scope Expansion - The applicable scope of the new measures has been expanded to include not only wealth management subsidiaries of commercial banks but also other wealth management companies approved by the China Banking and Insurance Regulatory Commission (CBIRC), including foreign-controlled joint venture wealth management companies [2][3]. - The expansion aims to clarify the legal positioning, responsibilities, and risk expectations of all parties involved in the sales process of wealth management products, including wealth management companies, agency sales institutions, and investors [2][3]. Group 2: Prohibitive Regulations - The new measures provide detailed explanations of 18 prohibitive regulations, including the prohibition of misleading sales, false advertising, and the use of absolute or interval values to display performance benchmarks, which aims to prevent disguised promotion of expected returns [4][5]. - The CBIRC emphasizes that the use of absolute values or interval values in performance benchmarks must be avoided to facilitate the transformation towards net value products and to break the expectation of guaranteed returns [5][7]. Group 3: Market Impact and Product Innovation - The wealth management market has seen significant growth, with the scale reaching 25.86 trillion yuan by the end of 2020, a year-on-year increase of 6.9%, and the net value-based wealth management products accounting for 25.79% of the total market [4]. - The new measures are expected to enhance the innovation capabilities of wealth management products, as the prohibition of guaranteed returns will push institutions to develop products that meet diverse market risk-return preferences [6][7].

Core Viewpoint - The financial management industry is undergoing a significant transformation towards "net value" as it adapts to regulatory guidance and customer demands, leading to a re-evaluation of risk and return dynamics in investment products [2][3][9]. Group 1: Market Transformation - The financial management market is entering a new phase of "net value" transformation, with a focus on balancing returns and risks as the era of guaranteed returns comes to an end [2][9]. - The transition to true net value has resulted in increased volatility in product net values, with a notable decline in the total scale of financial products from 27.65 trillion yuan at the end of 2022 to 25.34 trillion yuan by mid-2023 [3][5]. Group 2: Product Performance and Risk Management - The average yield of financial products has shown fluctuations, with monthly average yields recorded at 2.09%, 2.94%, and 2.65% for the years 2022, 2023, and 2024 respectively [5]. - A significant portion of financial products has experienced maximum drawdowns, with approximately 76% of products in 2022 exceeding 50 basis points, while in 2023 and 2024, over 70% of products had maximum drawdowns below 20 basis points [5][6]. Group 3: Investor Behavior and Product Supply - There is a notable mismatch between investor risk preferences and the actual risk classification of financial products, with 46.69% of investors showing a risk preference of C3 or above, while only 4.31% of products fall into the R3 category or higher [7][8]. - The industry has seen a trend towards product homogenization, driven by a focus on low-risk offerings, which has limited the diversity and potential returns of financial products [7][8]. Group 4: Future Strategies and Innovations - Financial companies are seeking to diversify their asset allocation strategies and align their performance assessments with client interests to ensure sustainable business development [9][10]. - Companies like Xingyin Wealth Management are adjusting their product offerings and performance benchmarks to better reflect market conditions and investor expectations, while also exploring new avenues for yield enhancement [9][10].

Core Viewpoint - ICBC Wealth Management has appointed Wu Qian as the new chairman, effective April 3, 2025, following approval from the National Financial Regulatory Administration. Wu has extensive experience in the financial sector, particularly within ICBC, and her leadership is expected to address the company's profitability challenges [2][4]. Group 1: Leadership Changes - Wu Qian will be the third chairman of ICBC Wealth Management, succeeding a position that has been vacant for nearly a year [4]. - The company has seen significant turnover in its leadership, with three chairmen and two presidents in its six-year history, indicating instability in its executive team [2][9]. - Wu's background includes 20 years in ICBC's financial accounting system and leadership roles in ICBC Ansheng Life Insurance, showcasing her deep ties to the "ICBC system" [2][3][8]. Group 2: Financial Performance - As of the end of 2024, ICBC Wealth Management's product management scale reached 1.96 trillion yuan, a 22% increase year-on-year, ranking second among the six major state-owned bank wealth management subsidiaries [9]. - The net profit for 2024 was 1.42 billion yuan, reflecting a 7.3% year-on-year growth, but this growth rate was the lowest among its peers, causing a drop in its ranking from third to fourth [9][10]. - The company has struggled to leverage its parent bank's strengths, leading to a decline in profitability despite an increase in management scale [9][10]. Group 3: Market Trends and Challenges - The wealth management industry is experiencing a shift towards equity and multi-asset investments, with ICBC Wealth Management's allocation to equity assets increasing significantly, although it still remains low at 3.1% of total assets [10][11]. - The company has faced challenges in adapting to a competitive environment characterized by price wars and a focus on customer-centric strategies, which Wu Qian aims to address [9][12]. - Wu's previous experiences in the insurance sector highlight her understanding of the need to balance growth and profitability, a challenge that ICBC Wealth Management currently faces [12].