Investment Rating - The report maintains an "Outperform" rating for the banking wealth management industry, indicating expected performance above the market benchmark by more than 10% [37]. Core Insights - The banking wealth management scale continued to grow significantly in May, with a weighted average annualized return of 2.57%, remaining stable compared to the previous month. The scale of wealth management products reached 31.3 trillion yuan, an increase of 0.5 trillion yuan month-on-month [1][9][10]. - Regulatory policies are increasingly standardizing wealth management operations, focusing on quality over scale. Future regulatory ratings will emphasize governance, asset management capabilities, risk management, and investor protection [1][2]. - The average performance benchmark for newly issued products fell to 2.55% in May, reflecting a downward trend in return expectations [16][24]. Summary by Sections Investment Rating - The report rates the banking wealth management industry as "Outperform" [37]. Market Performance - In May, the average annualized return for bank wealth management products was 2.57%, with cash management products yielding 1.49% and pure bond products yielding 2.69% [9]. - The total scale of wealth management products increased to 31.3 trillion yuan, marking a month-on-month rise of 0.5 trillion yuan [10]. Regulatory Environment - Regulatory policies are evolving to prioritize the quality of wealth management products, with a focus on governance and risk management rather than mere scale [1][2]. - The new regulatory framework will not encourage banks to pursue growth in scale without regard for quality, with a rating system that categorizes firms from 1 to 6 based on their operational quality [1]. Product Trends - The report predicts a further decline in performance benchmarks for wealth management products by 30-50 basis points [2]. - There is a shift towards longer-term liabilities and shorter-term assets in wealth management configurations, alongside an increase in the proportion of equity and risk assets [2].