Core Viewpoint - The report from Kaiyuan Securities indicates a positive outlook for the steady growth of wealth management, but the incremental growth may not match that of 2024, primarily due to ongoing pressure on the asset side [1] Group 1: Liability Side - Wealth management scale has reached a historical high of 30.67 trillion yuan as of Q2 2025, with a year-on-year increase of 7.5%. However, the growth rate is expected to slow down, maintaining around 7.5% for the entire year of 2025 [1] - There is a preference for short-term low-yield products, leading to a gradual reduction in yield expectations [1] - The cash management scale is declining, while fixed-income products with a "minimum holding period" are experiencing significant growth, reflecting a high demand for liquidity among residents [1] Group 2: Asset Side - There is significant pressure on asset allocation, necessitating an increase in high liquidity assets such as cash and bank deposits over public funds and interbank certificates of deposit [2] - Cash and bank deposits accounted for approximately 910 billion yuan in incremental investment assets in Q2 2025, representing over half of the total investment asset increase [2] - The demand for public funds is high, with wealth management holding 1.38 trillion yuan in public funds as of Q2 2025, marking a historical high in terms of holding ratio at 4.20% [2] Group 3: Competitive Landscape - The top three wealth management companies as of May 2025 are Zhaoyin Wealth Management, Xingyin Wealth Management, and Xinyin Wealth Management, benefiting from a strong retail customer base and significant group synergy [3] - The market share of small and medium-sized banks has decreased to 10%, with many actively exiting the market and transitioning to pure agency sales [3] - The number of agency institutions for wealth management companies increased to 594 by June 2025, indicating a shift in strategy among smaller banks to leverage regional advantages [3]