Core Viewpoint - The banking wealth management market has surpassed 30 trillion yuan in scale in the first half of this year, but some institutions are engaging in misleading marketing practices that could harm investor rights and lead to a short-term funding tendency in the market [1][5]. Group 1: Misleading Marketing Practices - Some institutions display high returns on their wealth management products on the homepage, but the actual returns are significantly lower when investors delve into the product details [2][3]. - There is a lack of uniform standards for displaying performance metrics, leading to discrepancies between homepage listings and detailed product information [4][6]. - Instances of "high yield" displays on the homepage followed by lower actual returns have been reported, causing confusion and distrust among investors [5][6]. Group 2: Regulatory Concerns - The China Banking Association has issued guidelines for the display of past performance, but many institutions still do not comply fully, leading to potential violations of asset management regulations [4][8]. - Regulatory bodies have imposed significant fines on institutions for non-compliance with investment management standards, indicating ongoing issues within the industry [7]. Group 3: Recommendations for Improvement - Experts suggest that there should be a continuous refinement of disclosure rules regarding key performance information to curb unreasonable marketing behaviors and better protect investor interests [8]. - There is a call for banks and wealth management companies to enhance their research and investment capabilities to provide differentiated products and services that meet diverse investor needs [8].

Core Insights - The article highlights the significant discrepancy between advertised annualized returns of bank wealth management products and their actual performance, with many products showing much lower returns after purchase [1][2][4] - The phenomenon of "yield assassins" is emerging, where banks manipulate the display of returns to attract investors while concealing the true performance metrics [1][4][5] Summary by Sections Yield Discrepancy - Many banks prominently display "annualized returns since inception," which are often inflated, while more relevant short-term performance metrics are buried in the app interface [1][2][3] - For instance, a product advertised with a 2.93% annualized return actually yielded only 1.05% over the last three months, indicating a significant gap between perceived and actual returns [2][3] Misleading Practices - Some banks engage in practices such as "ranking" new products by temporarily inflating their returns, which misleads investors about the sustainability of these yields [4][5] - The use of complex fee structures, such as "excess performance fees," further complicates the understanding of actual returns, often leading to unexpected deductions from investors' earnings [7][8] Market Trends - The bank wealth management market has grown to 31.6 trillion yuan, with expectations of continued growth despite declining yields in fixed-income products [9][12] - The average annualized return for fixed-income products has decreased, with the latest figures showing a drop to 2.30% for one-month products and 2.73% for three-month products [11][12] Product Types and Future Outlook - Fixed-income products dominate the wealth management landscape, comprising over 95% of the total product scale, but are facing pressure from declining interest rates [10][11] - The trend towards "fixed income plus" products, which combine stable fixed-income assets with higher-risk investments, is expected to grow, potentially becoming a key driver for future market expansion [12]

Core Insights - The article highlights the significant discrepancy between advertised annualized returns of bank wealth management products and their actual performance, with many products showing much lower returns after purchase [1][2][4] - The phenomenon of "yield assassins" is emerging, where banks manipulate the display of returns to attract investors while concealing the true performance metrics [1][4][5] - There is a lack of standardized methods for displaying returns across different banks, leading to confusion among investors [2][3][7] Summary by Sections Yield Discrepancy - Many bank wealth management products advertise inflated annualized returns, such as "since inception annualized return," while actual returns over recent months are significantly lower, often below 2% [1][2] - For example, a product advertised with a 2.2% annualized return had an actual return of only 1.94% over the last three months [2] Misleading Display Practices - Banks often highlight high historical returns while burying more relevant short-term performance data deeper in their apps, making it difficult for investors to access accurate information [3][4] - The practice of "ranking" new products by temporarily inflating their returns using funds from older products has been noted, leading to a sharp decline in returns shortly after purchase [4][5] Complex Fee Structures - Many products have complicated fee structures, such as "excess performance fees," which are not clearly communicated to investors, leading to unexpected costs [7][8] - The calculation of these fees is often convoluted, further complicating investor understanding [8] Market Trends - The bank wealth management market has grown to 31.6 trillion yuan, with expectations of continued growth despite declining yields [9][12] - Fixed-income products dominate the market, comprising over 95% of total wealth management product volume, but their yields have been declining due to lower interest rates [10][11] - The trend towards "fixed income plus" products is expected to continue, as they offer better potential returns in a low-interest environment [11][12]

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 significantly lower actual returns due to manipulative practices by wealth management companies [1][2]. Group 1: Industry Practices - Wealth management companies are engaging in unfair competition by using "T-1 valuation" methods to manipulate returns, leading to discrepancies in actual investor earnings [2][6]. - The practice of "yield shifting" allows new products to appear more attractive by transferring returns from older products, creating an illusion of high performance [6][10]. - The regulatory environment has tightened, limiting previous methods of smoothing returns, prompting companies to seek new ways to maintain high reported yields [9][12]. Group 2: Impact on Investors - Investors in older products often receive lower returns, leading to feelings of being treated unfairly and encountering "financial assassins" [15][16]. - The average net value growth rate for certain products has been low, with a reported annualized return of only 1.7%, indicating that many investors are not receiving the returns they expect [16]. - The reliance on short-term gains and high turnover in investment behavior is detrimental to the overall market, as it discourages long-term value investing [15][16]. Group 3: Regulatory and Market Dynamics - The shift towards T-1 valuation methods has been driven by a desire to circumvent stricter regulations, reflecting a persistent "scale obsession" within the industry [9][14]. - The article calls for regulatory measures to ensure fairness in the market and to penalize non-compliant practices, emphasizing the need for a more equitable investment environment [15][16].

Core Viewpoint - The lack of a unified standard for information disclosure in wealth management products has created an environment where "wealth management assassins" can thrive, misleading investors and eroding trust in the market [1][2]. Group 1: Current Issues in Wealth Management Products - Many banks are promoting wealth management products with advertised returns that significantly differ from actual returns, leading to investor disappointment and losses [1][3]. - The display of "annualized returns since inception" often misleads investors, as it does not accurately reflect recent performance, with some products showing a stark contrast between historical and current returns [2][3]. - The proliferation of "shell products" allows banks to initially attract investors with high returns, only to lower them once sufficient capital is gathered, creating a cycle of misleading promotions [1][3]. Group 2: Regulatory Response and Recommendations - Regulatory bodies have begun addressing these issues, with new guidelines aimed at ensuring accurate representation of product returns and preventing misleading practices [4][6]. - Proposed reforms include the introduction of dynamic return disclosure standards, a restructured performance benchmark system, and enhanced monitoring of abnormal return fluctuations [5][6]. - The need for stricter management of product issuance and a focus on investor interests is emphasized to create a more transparent and trustworthy market environment [6].