Core Viewpoint - The article discusses the ongoing transformation of bank wealth management products towards "true net value" amid regulatory pressures, highlighting the introduction of new third-party valuation tools and the resulting industry debate on their implications for fair value and investor protection [2][3][6]. Group 1: Regulatory Context - In December 2024, regulatory authorities mandated further standardization of bank wealth management product valuations, prohibiting practices like closing price adjustments and requiring comprehensive reforms by the end of 2025 [3]. - The regulatory changes aim to clarify boundaries for previously used technical methods that "modified" net value curves [3]. Group 2: Introduction of New Valuation Tools - Several wealth management subsidiaries are now exploring new third-party valuation tools, such as those provided by China Chengxin Index and China Bond Rating, to address the need for more stable valuations in the face of market volatility [3][4]. - The new valuation methods combine financial engineering, machine learning, and big data to balance short-term trading information with long-term credit value [3][4]. Group 3: Industry Perspectives - Supporters of the new valuation methods argue they can help mitigate cyclical fluctuations in the bond market and stabilize investor expectations, while critics express concerns about potential deviations from fair value and misuse for performance enhancement [2][6]. - The debate reflects the challenges faced by the banking wealth management sector as it deepens its transition towards true net value [2][8]. Group 4: Technical Features of New Valuation Methods - The new valuation approach emphasizes three key features: increasing the weight of actual transaction prices after significant monetary policy changes, selecting optimal credit-rated entities for curve construction, and using historical transaction prices to reduce the impact of short-term market sentiment [4][5]. - This method aims to provide a more accurate reflection of long-term value, particularly for long-term investment funds like bank wealth management and insurance capital [4]. Group 5: Risks and Concerns - There are concerns that the smoothing of valuations could lead to a disconnect from actual market prices, potentially being used for performance display and product ranking, which may mislead investors [6][7]. - The reliance on smoother valuations could create persistent price discrepancies between different valuation methods, leading to accumulated unrealized gains or losses [6]. Group 6: Future Outlook - The industry is expected to see a coexistence of multiple valuation sources, with a gradual move towards standardization and clearer regulatory guidelines for third-party valuation institutions [8]. - The dual impact of new valuation methods on investor rights is acknowledged, as they can stabilize market expectations while also potentially amplifying differences in returns among investors during market turning points [8].

Core Viewpoint - The article discusses the ongoing transformation of bank wealth management products towards "true net value" amid regulatory pressures, highlighting the introduction of new third-party valuation tools to stabilize product net value curves and the resulting industry debates on their implications for fair value and investor protection [3][4][10]. Group 1: Regulatory Changes and Industry Response - In December 2024, regulatory authorities mandated stricter valuation practices for bank wealth management products, prohibiting methods like closing price adjustments and requiring full compliance by the end of 2025 [4]. - In response to regulatory pressures and market competition, some wealth management subsidiaries have begun exploring new third-party valuation tools, such as those provided by China Chengxin Index Company [4][5]. - The introduction of these new valuation methods aims to mitigate the impact of short-term market fluctuations on net value, thereby addressing the "negative feedback" risks associated with bond market volatility [5][9]. Group 2: Valuation Methodologies and Their Implications - The new valuation approach by China Chengxin Index Company separates yield into "long-term true value" and "short-term emotional fluctuations," allowing for a more stable valuation that aligns with long-term investment strategies [5]. - Critics argue that while smoothing techniques can reduce net value volatility, they may also lead to a disconnection from actual market prices, potentially being misused for performance display and product ranking [9][10]. - The reliance on traditional valuation methods like China Bond and China Securities has shown limitations, particularly in their dependence on immediate transaction data, which can amplify market volatility [6][10]. Group 3: Market Divergence and Future Outlook - There is a growing divide in the market regarding the use of new third-party valuation tools, with some advocating for their necessity in reflecting true asset values, while others caution against their potential to distort market perceptions [10][12]. - The article emphasizes the need for clear industry standards and regulatory guidance to define the reasonable boundaries of valuation techniques, ensuring they serve the purpose of fair value assessment without disrupting market order [10][12]. - The future landscape is expected to feature a coexistence of multiple valuation sources, gradually moving towards a more regulated framework that balances traditional and new valuation methods [13].