Scale - The total wealth management scale increased by 0.72 trillion, returning to over 30 trillion [1] - As of the end of Q2 2025, the wealth management balance reached 30.67 trillion, reflecting a 2.4% growth since the beginning of the year [1][2] - The Q2 single-season wealth management scale increment was 1.53 trillion, lower than the 1.89 trillion from the same period last year, but higher than the average increment of 0.64 trillion from 2021 to 2023 [1][3] Product Characteristics - Open-ended products maintained a stable proportion of around 80%, while cash management products decreased to 6.4 trillion [5] - Open-ended products contributed 86.1% of the scale increment in the first half of the year, with significant growth from minimum holding period products [5] - Fixed income products accounted for 97.2% of the total wealth management products, with a slight increase in the proportion of mixed and equity products [8][10] Asset Allocation - As of the end of Q2 2025, cash and bank deposits reached 8.18 trillion, increasing by 500 billion since the beginning of the year [11] - The allocation to public funds significantly increased by 450 billion, reaching 1.38 trillion, indicating a growing preference for high liquidity assets [12] - The overall asset allocation showed a tendency to increase high liquidity assets while reducing credit bonds [9][11] Market Dynamics - The "disintermediation" effect is expected to support the growth of wealth management scale, although potential disturbances may increase in the second half of the year [13][14] - The low interest rate environment and the need for stable returns are driving the demand for fixed income products, while cash management products face challenges due to lower yields [15] - Regulatory changes are anticipated to enhance the asset management capabilities of wealth management institutions, focusing on quality over scale [16]

Group 1 - The core viewpoint of the articles highlights that the valuation rectification of bank wealth management is entering a critical phase, with multiple institutions steadily advancing their work in accordance with regulatory requirements [1] - Since the issuance of regulatory notifications in December last year, banks have been actively responding to complete their semi-annual rectification plans by the end of June [1] - After the rectification is completed, wealth management products will no longer use methods to smooth net value fluctuations, and investors will need to face real market volatility risks directly [1] Group 2 - The progress of the rectification work shows significant differentiation among institutions, with some banks in southern China having completed their tasks ahead of schedule, while others strictly follow the regulatory timeline [3] - Many wealth management companies are focusing on resolving the closing price valuation issue, which has become the main content of their current work [3] - Regulatory authorities have prohibited wealth management companies from using methods such as closing price adjustments or self-built valuation models to smooth net value fluctuations, requiring the use of third-party valuations [3] Group 3 - The completion of the rectification will lead to a new normal of increased net value fluctuations for bank wealth management products, as investors will directly bear the value changes of underlying assets [4] - The fundamental change in the valuation method for bond assets is a core aspect of this rectification, moving away from using closing prices to a more accurate market value approach [4] - The new valuation system will reflect the fair market value more accurately, ensuring that product net values can promptly synchronize with market changes [4] Group 4 - Bank wealth management companies have begun to adjust their performance comparison benchmarks to guide investors' expectations, with over a hundred products having completed benchmark adjustments [5] - Some products have seen benchmark reductions exceeding 150 basis points, indicating a shift towards a more realistic net value fluctuation environment [5] - The new norm will be that net values of wealth management products will follow market conditions closely, requiring investors to adapt to this more authentic volatility [5]

Core Viewpoint - The valuation rectification of bank wealth management is approaching its mid-year assessment, with multiple banks steadily advancing their rectification plans to switch valuation methods by the end of June and complete the process by the end of 2025 [1] Group 1: Valuation Rectification Process - Several bank wealth management companies are working to complete their semi-annual rectification plans by the end of June [1] - The rectification aims to shift from previous practices of "making up for losses" and self-built models to a more transparent management approach [1] - Post-rectification, wealth management products will require "penetrating" management, allowing investors to directly face net value fluctuations [1] Group 2: Industry Recommendations - Industry experts suggest that bank wealth management companies can enhance asset portfolio efficiency and dynamically adjust allocations to better manage net value volatility [1] - These strategies are aimed at increasing returns for investors despite the anticipated fluctuations in net value [1]

Group 1 - The core viewpoint of the article emphasizes that after the rectification, bank wealth management products will implement "penetrating management," allowing investors to face real net value fluctuations directly [2][5] - Many bank wealth management companies are expected to complete their rectification plans by the end of June, with a focus on two main methods: "using surplus to cover losses" and closing price valuation [3][4] - The adjustment of performance comparison benchmarks by banks is aimed at aligning investor return expectations, with over a hundred bank wealth management products having adjusted their benchmarks, some by more than 150 basis points [5][6] Group 2 - The rectification will lead to a decrease in the number of low-volatility, stable wealth management products, while the proportion of mixed wealth management products may increase [6] - Future focus for bank wealth management companies will shift towards asset allocation capabilities to better cope with normalized net value fluctuations [7] - Companies are encouraged to dynamically adjust their asset holdings and strategies to enhance overall investment returns, with a focus on improving asset combination efficiency [7]

Core Viewpoint - The banking wealth management industry is undergoing significant changes due to regulatory adjustments and market dynamics, with a focus on innovation and adaptation to lower interest rates [2][5][6]. Industry Dynamics - The valuation rectification of bank wealth management is halfway through, with some wealth management subsidiaries having completed their adjustments by the end of last year [4][5]. - A new round of interest rate cuts has led to large-denomination certificates of deposit entering the "1" era, with many banks removing 5-year products, indicating a proactive optimization of liability structures under net interest margin pressure [5]. - The average interest rate for 3-year products is now between 1.55% and 1.75%, down approximately 80 basis points compared to the same period in 2024 [5]. Innovation in the Industry - Banks are innovating in wealth management products, focusing on long-term and dividend-type products to capture market opportunities amid declining deposit rates [6]. - Agricultural Bank of China Wealth Management and others are launching long-term closed-end products and flexible dividend models to enhance investor returns [6]. - Xingyin Wealth Management is implementing multiple stock option businesses across various sectors, including biomedicine and high-end manufacturing, as part of its strategy to support specialized and innovative enterprises [6]. Performance of Returns - For the week of June 2 to June 8, 2025, cash management products recorded an annualized yield of 1.43%, down 1 basis point, while money market funds reported 1.34%, down 2 basis points [8]. - The yield spread between cash management products and money market funds increased by 1 basis point, but remains within a converging trend [8]. Tracking of Net Asset Value - The net asset value (NAV) ratio of bank wealth management products was 0.81%, down 0.56 percentage points, indicating a low level of NAV [14]. - The NAV ratio is positively correlated with credit spreads, and if credit spreads continue to widen, it may put upward pressure on the NAV ratio [14].