Market Overview - The bond market experienced an unexpected correction last week, with an overall balanced and loose funding environment. The weighted average of DR007 on August 15 was 1.48%, and the yield on 10-year government bonds closed at 1.75% [2] - In the stock market, major A-share indices surged, with the ChiNext Index, STAR 50 Index, and Shenzhen Component Index recording weekly gains of 8.58%, 5.53%, and 4.55% respectively. The communication, electronics, and non-bank financial sectors led the gains [2] Product Performance - The number of underperforming products remains low, with 25,210 public wealth management products in existence as of August 17, 2025. Among these, 141 products had a cumulative net value below 1, resulting in a comprehensive break-even rate of 0.56% for bank wealth management. The break-even rates for equity and mixed wealth management products were 35.71% and 4.8%, respectively, while fixed income products had a break-even rate of 0.28% [3] - The break-even rates for fixed income products of various maturities remained low, with 1-2 year and over 3-year products slightly higher at 0.71% and 0.57% respectively [3] New Product Issuance - A total of 433 wealth management products were issued by 32 wealth management companies from August 11 to August 15, with joint-stock banks leading in issuance. Everbright Wealth issued 39 products, followed by Xinyin Wealth with 30 and Xinyin Wealth with 29 [4] - The newly issued products were primarily R2 (medium-low risk), closed-end net value type, and fixed income public products, with only 4 mixed products issued, accounting for 1.8%. No new equity or financial derivative products were launched [4] - Pricing trends showed a decline in most product maturities, with 1-2 year and 2-3 year products dropping below 2.80%, while products with maturities over 3 years saw a significant rebound to 2.55% [4] Investment Strategies - Notably, Xinyin Wealth launched a fixed income enhancement product named "Fengli Xindong Ruixiang 3M Holding Period Target Red 3 (Jixing Version)", which is a "fixed income+" product with a risk level of three and a minimum holding period of 90 days. The product's performance benchmark is based on a combination of various indices and deposit rates [5] Yield Performance - Fixed income wealth management yields declined, with an average net value growth rate of 0.0511% over the past week. Mixed and equity products had average net value growth rates of 0.2075% and 1.354%, respectively. Among fixed income products, those with maturities over 3 years had the highest average net value growth rate of 0.0794% [6] - The average annualized yield for cash public wealth management products in RMB, USD, and AUD was 1.338%, 3.924%, and 2.87%, respectively [6] - The proportion of negative yield products increased, primarily due to fixed income products, with 9.94% of RMB public wealth management products experiencing negative returns last week [6][7] Industry Trends - The scale of bank wealth management grew unexpectedly by approximately 2 trillion RMB to 32.67 trillion RMB by the end of July 2025, driven by the maturity of high-interest deposits and the relative attractiveness of wealth management products compared to deposit rates [8] - In August, the wealth management scale is expected to exceed 33 trillion RMB, with an annual target of 33.5 trillion RMB [8] - Last week, 16 new ESG-themed wealth management products were launched, indicating a rapid expansion of thematic wealth management offerings [9]

Core Viewpoint - The report from CITIC Securities indicates that by the end of July 2025, the scale of bank wealth management is expected to exceed expectations, growing by approximately 2 trillion yuan to reach 32.67 trillion yuan, driven by the maturity of high-interest three-year deposits and the relative attractiveness of wealth management products compared to deposit rates [1] Group 1 - The growth in bank wealth management is primarily attributed to the reallocation of deposits as high-interest three-year deposits mature [1] - The decline in deposit rates is occurring at a faster pace than the decrease in wealth management product yields, enhancing the appeal of these products [1] - Non-bank deposits are significantly related to the growth in wealth management scale, with an expected increase of at least 800 billion yuan attributed to cash management and short-term fixed-income products [1] Group 2 - The structure of wealth management shows that cash contributions are relatively low, while "fixed income plus" products are emerging as a strong performer, reflecting an increase in market risk appetite [1] - The wealth management scale is anticipated to surpass 33 trillion yuan in August, with an annual target of over 33.5 trillion yuan [1]

Investment Rating - The industry is rated as "Outperforming the Market" with an expected increase of over 10% relative to the market index in the next six months [5][19]. Core Insights - As of the end of 1H25, the total scale of wealth management products reached 30.67 trillion yuan, reflecting a year-on-year growth of 7.53% and a quarter-on-quarter increase of approximately 1.53 trillion yuan [2][11][17]. - There is an observed increase in the risk appetite among individual investors, with the proportion of aggressive investors rising by 1.25 percentage points compared to the same period in 2024 [2][12][17]. - The recent adjustments in deposit rates, particularly the significant drop in one-year deposit rates below 1%, are expected to drive a gradual increase in demand for fund reallocation, as investors seek better returns in a low-interest environment [2][13][17]. - Regulatory policies and their implementation pace are crucial to monitor, especially following the negative feedback from the bond market in 2022, which has affected overall risk appetite [3][14][16]. Summary by Sections Wealth Management Scale - The total number of wealth management products in existence reached 4.18 million, with a year-on-year growth of 4.54% [11]. - Wealth management products from companies accounted for 89.61% of the total market scale, with a total scale of 27.48 trillion yuan, reflecting a year-on-year growth of 12.98% [12]. Fund Reallocation Demand - Recent adjustments in deposit rates have led to a significant decline, with the average reduction exceeding 15 basis points, marking the largest cut in three years [13]. - The low-interest environment, combined with a recovering capital market, is expected to enhance risk appetite and increase the demand for fund reallocation [2][13][17]. Regulatory Policy Focus - The focus on regulatory policies is heightened, particularly in light of the need to stabilize net asset values and manage risk [3][14][16]. - The ongoing regulatory adjustments are anticipated to continue, necessitating close attention to the direction and pace of policy changes [3][16]. Investment Recommendations - The expectation is for the wealth management scale to maintain steady growth throughout 2025, driven by increasing risk appetite and the need for diversified investment products [2][17]. - Attention should be given to valuation differentiation and the evolving regulatory landscape as key factors influencing future performance [3][17].

Core Viewpoint - The report highlights the growth and performance of the banking wealth management market in the first half of 2025, indicating a stable increase in both the scale and returns of wealth management products. Group 1: Market Overview - As of the end of June 2025, the total scale of the wealth management market reached 30.67 trillion yuan, an increase of 2.38% from the beginning of the year and a year-on-year increase of 7.53% [1] - A total of 16,300 new wealth management products were issued in the first half of the year, raising 36.72 trillion yuan [1] Group 2: Product Performance - The average annualized return of wealth management products in the first half of 2025 was 2.12%, a decrease from the average return of 2.65% for the entire year of 2024 [3] - Wealth management products generated a total return of 389.6 billion yuan for investors in the first half of the year, representing a year-on-year growth of 14.18% [4] Group 3: Investor Behavior - The number of investors holding wealth management products reached 136 million by the end of June 2025, an increase of 8.37% from the beginning of the year [5] - Among individual investors, those with a risk preference classified as level two (steady) accounted for 33.56% as of mid-2025 [6] - The proportion of level five (aggressive) individual investors increased by 1.25 percentage points compared to the same period last year, while level one (conservative) investors also saw an increase of 1.03 percentage points [7] Group 4: Regulatory Environment - The Financial Regulatory Bureau issued the "Product Appropriateness Management Measures" on July 11, 2025, which will take effect on February 1, 2026, requiring financial institutions to understand products and clients to ensure suitable product sales [8]

Core Insights - The overall scale of the wealth management market in China reached 30.67 trillion yuan by the end of June 2025, reflecting a 2.38% increase from the beginning of the year and a 7.53% year-on-year growth [1] - A total of 16,300 new wealth management products were issued in the first half of the year, raising 36.72 trillion yuan in funds [1] Group 1: Market Performance - The average annualized yield of wealth management products was 2.12% in the first half of 2025, down from 2.65% for the entire previous year [3] - Wealth management products generated a total return of 389.6 billion yuan for investors in the first half of 2025, representing a 14.18% increase compared to the same period last year [3] - Fixed income products remain dominant, accounting for 97.2% of the total scale of wealth management products by the end of June, an increase of 0.32 percentage points year-on-year [2] Group 2: Investor Trends - The number of investors holding wealth management products reached 136 million by the end of June 2025, an increase of 8.37% from the beginning of the year [4] - Among individual investors, the proportion of those with a risk preference of level 5 (aggressive) increased by 1.25 percentage points compared to the same period last year [6] - The Financial Regulatory Authority has introduced new guidelines for financial institutions to ensure appropriate product sales to suitable clients, effective from February 1, 2026 [6]

Core Insights - The scale of bank wealth management products has exceeded 31 trillion yuan this year, with expectations to reach 33 trillion yuan by year-end due to declining deposit rates and increased demand from corporate clients [1][2][4] Group 1: Market Growth - The bank wealth management market has seen significant expansion, driven primarily by corporate demand, as businesses shift funds from lower-yielding deposits to higher-yielding wealth management products [2][3] - The transition of funds from deposits to wealth management products is expected to continue as deposit rates decline, providing a long-term growth momentum for the market [2][4] Group 2: Corporate Demand - Corporate clients exhibit explosive growth in demand for wealth management products, primarily due to the immediate adjustment of corporate deposit rates, which encourages a shift to higher-yielding options [2][3] - The core requirements of corporate clients focus on safety and liquidity, with a preference for wealth management products that primarily invest in high-security assets like interbank certificates of deposit [2] Group 3: Pricing Strategy - Wealth management companies are now using interbank deposit rates as a pricing anchor, adjusting yields to maintain attractiveness amid declining deposit rates [3][4] - The typical interbank deposit rate is currently around 1.45%, with comparable wealth management products offering pre-fee yields of approximately 1.85% and post-fee yields around 1.65% [3] Group 4: Challenges in Yield Maintenance - The decline in deposit rates presents challenges for wealth management companies in meeting yield targets, as the narrowing of term and credit spreads reduces the yield advantage of wealth management products over deposits [4][5] - Investors are increasingly focused on achieving performance benchmarks rather than seeking excess returns, complicating the yield maintenance for wealth management products [4] Group 5: Strategic Adjustments - In response to market conditions, wealth management companies are adjusting strategies to identify low-volatility, stable assets, including high-yield non-standard assets and bond funds [5] - The rapid growth of short-term bond wealth management products is notable, but they face significant risks if the bond market adjusts, highlighting the need for diversification in asset classes to sustain returns [5]

Core Viewpoint - The April wealth management market saw a slight decline in the number of newly issued products, but the issuance of rights-containing wealth management products accelerated again, indicating a shift in investor preference towards mixed and equity products as fixed-income yields continue to decline [1][3][5]. Group 1: Market Performance - In April, the number of newly issued mixed products increased by 42% month-on-month, totaling 81 products [1]. - The total scale of bank wealth management rose by 2.1 trillion yuan to 31.3 trillion yuan, marking a month-on-month increase of 7.35% and a year-on-year increase of 6.83% [5][6]. - The annualized yield of closed fixed-income products rose by 1.94 percentage points to 3.69% over the past month [1][6]. Group 2: Product Issuance - In April, 4,605 new RMB wealth management products were issued, a slight decrease of 143 products from March [2]. - Fixed-income products accounted for over 96% of the newly issued products, with 4,507 products primarily investing in interbank certificates of deposit, bank deposits, and bonds [2]. - The issuance of mixed wealth management products continued to rise, with 81 new products launched, an increase of 24 products month-on-month [2]. Group 3: Performance Metrics - The average performance benchmark for newly issued open-ended wealth management products was 2.11%, down 0.03 percentage points month-on-month, while closed products averaged 2.66%, down 0.1 percentage points [3][4]. - The average performance benchmark for closed mixed and equity products rose to 2.77% and 6.00%, respectively, with increases of 0.11 and 2.16 percentage points [4]. Group 4: Market Drivers - The increase in wealth management scale is attributed to seasonal factors, with April being a traditional peak season for wealth management, and a recovery in the bond market leading to improved fixed-income product yields [5][6]. - The decline in deposit rates has made wealth management products more attractive, potentially driving further growth in the sector [7].