Core Viewpoint - The new regulations for bank distribution are expected to enhance the professionalism of banks as distribution institutions and effectively protect investor interests, while also leading to a reshuffle in the product distribution business [1][6]. Group 1: New Regulations Overview - The new regulations, effective from March 21, 2025, set higher entry standards and detailed procedural requirements for bank distribution of financial products, mandating centralized management by the banks [2]. - Key changes include stricter requirements for cooperation institutions and products, new prohibitions in sales management, and reinforced customer service responsibilities for banks [2]. Group 2: Private Fund Market - Since 2023, new regulations have significantly improved transparency and compliance in the private fund industry, leading to a decline in the net issuance of private securities funds while increasing the average fundraising scale per product [3]. - The tightening of private fund entry standards is expected to benefit top-tier managers, as many smaller managers may face challenges in meeting the new requirements [7]. Group 3: Public Fund Market - As of the end of 2024, banks remain the largest distribution channel for public funds, holding approximately 45% of the non-monetary assets among the top 100 distribution institutions [4]. - The decline in actively managed equity fund holdings has negatively impacted banks, as the growth in stock index funds has not compensated for the outflow from actively managed funds [4]. Group 4: Wealth Management and Cross-Bank Distribution - By the end of 2024, there were 562 institutions involved in the distribution of wealth management products, an increase of 234 from the end of 2022, with over 25% of the distribution amount coming from non-parent banks [5]. Group 5: Market Outlook - The professionalization of distribution is anticipated to protect investor interests, and the product distribution business may undergo significant changes as a result of the new regulations [6].