Group 1: Investment Rating - No investment rating for the industry is provided in the report. Group 2: Core Views - The bank wealth - management industry has entered the era of wealth - management companies, with regulatory requirements approaching those of the public fund industry. The scale of wealth management increased in 25Q2 compared to 25Q1, and the net - breaking rate decreased slightly in 25Q2 but increased since late July. The industry increased its allocation to public funds in 25H1, mainly increasing positions in money - market and bond funds in 25Q2 [2][6][10]. - Different types of wealth - management companies have different performance and asset - allocation characteristics. Large - bank wealth - management companies generally increased their allocation to public funds, and their overall scale and proportion of public - fund investment rose. Joint - stock bank wealth - management companies also generally increased their allocation to public funds and slightly increased their allocation to deposit - type assets. Most urban and rural commercial bank wealth - management companies increased their allocation to deposit - type and public - fund assets and reduced their allocation to bond assets [37][39][42]. - The indirect investment ratio of wealth - management companies has increased in recent years, which may be related to the configuration of deposits through insurance asset management and trust plans and bond investment through SPV [45]. Group 3: Summary by Directory 1. 25H1 Wealth - Management Scale Steady Growth 1.1 Bank Wealth Management Enters the Era of Wealth - Management Companies - Regulatory requirements for bank wealth management are getting closer to those of the public fund industry. Since 2018, a series of regulatory policies have been introduced, narrowing the gap between the two industries. As of September 2025, 32 wealth - management companies have been approved for establishment and all are in operation. It is expected that there will be about 40 wealth - management companies in the future, and small and medium - sized banks without wealth - management companies will gradually withdraw from the wealth - management business [6][10]. - In the first half of 2025, the net profit of wealth - management companies showed stable growth. The overall net profit increased by 1.7% year - on - year, with large - bank and joint - stock bank wealth - management companies seeing growth of 7.2% and 0.2% respectively, while urban and rural commercial bank wealth - management companies' net profit decreased by 7.3% [12]. 1.2 25Q2 Wealth - Management Scale Slightly Increased Compared to 25Q1 - As of June 2025, the wealth - management scale was 30.67 trillion yuan. In 25Q1, the scale decreased by 0.8 trillion yuan, and in 25Q2, it increased by about 1.5 trillion yuan. In July 2025, the scale increased seasonally, and the growth slowed down in August [15][17]. - In 25Q2, the wealth - management scale of most wealth - management companies increased, with large - bank, joint - stock bank, and urban and rural commercial bank wealth - management companies seeing increases of 7.8%, 4.6%, and 10.9% respectively compared to 25Q1. By type, the scale of fixed - income and hybrid products of various wealth - management companies increased in Q2 compared to Q1 (except for the hybrid products of joint - venture wealth - management companies) [20][23]. - The net - breaking rate of wealth - management products decreased slightly in 25Q2 but increased since late July. As of September 14, 2025, the net - breaking rate of public wealth - management products of wealth - management companies was about 2.28%, higher than that at the beginning of the year. The average performance comparison benchmark of newly issued RMB fixed - income wealth - management products of wealth - management companies has been declining [25][28]. 2. Bank Wealth Management Increased Allocation to Public Funds in 25H1 2.1 Wealth Management's Investment Proportion in Public Funds Increased Significantly in 25Q2 - In 25H1, bank wealth - management products increased their allocation to public funds. As of June 2025, the proportion of bank wealth - management products invested in bonds, deposits, non - standard assets, equities, and public funds was 55.6%, 24.8%, 5.5%, 2.4%, and 4.2% respectively, with changes of - 1.8, + 1.5, - 0.1, - 0.2, + 1.2 percentage points compared to 25Q1 [32]. - In 25Q2, most wealth - management companies increased their allocation to public funds. Bohai Bank Wealth Management and Huaxia Bank Wealth Management had relatively large increases in the proportion of public - fund investment [33]. 2.2 Asset - Allocation Changes of Wealth - Management Companies' Wealth Management in the First Half of 2025 - Large - bank wealth - management companies generally increased their allocation to public funds, with the total scale rising to 0.4 trillion yuan and the proportion rising to 3.8%. Except for Jianxin and Jiaotong Wealth Management, the proportion of deposit - type assets decreased, and except for Jianxin and Nongyin Wealth Management, the proportion of bond assets decreased [37]. - Joint - stock bank wealth - management companies generally increased their allocation to public funds, with the overall proportion rising from 2.6% at the end of 2024 to 3.8%. Bohai Bank Wealth Management and Huaxia Bank Wealth Management had relatively large increases in the proportion of public - fund investment. They also slightly increased their allocation to deposit - type assets [39]. - Most urban and rural commercial bank wealth - management companies increased their allocation to deposit - type and public - fund assets and reduced their allocation to bond assets. The three urban and rural commercial bank wealth - management companies with the highest proportion of public - fund allocation were Qingyin, Huiyin, and Shangyin [42]. - The indirect investment ratio has increased. As of H1 2025, the indirect investment scale of 20 wealth - management companies was 10.97 trillion yuan, accounting for 65.8%, and the proportion has increased in recent years [45]. 3. Wealth Management Increased Allocation to Money - Market and Bond Funds in 25Q2 - In 25Q2, the scale of wealth management's allocation to public funds increased significantly. As of June 2025, the scale was about 1.3 trillion yuan, accounting for 4.2%, the highest since 2020, an increase of 1.2 percentage points compared to 25Q1 [49]. - Bond funds are still the main type of public funds allocated by bank wealth management. In 25Q2, bank wealth management mainly increased its allocation to money - market and bond funds, with increases of about 0.05 trillion yuan and 0.29 trillion yuan respectively. It reduced its allocation to hybrid, stock, and alternative investment funds, and slightly reduced its allocation to REITs and QDII/international funds [50]. - In terms of the breakdown of bond funds, in 25Q2, the investment proportion of medium - and long - term pure - bond funds and first - class hybrid bond funds decreased, while the investment proportion of passive index - type bond funds and short - term pure - bond funds increased. In 25Q2, wealth management increased its allocation to medium - and long - term pure - bond funds, short - term pure - bond funds, and passive index - type bond funds by 0.08, 0.1, and 0.1 trillion yuan respectively [55]. - Wealth - management products prefer to invest in bond funds with large scales. The top three bond funds in terms of wealth - management holdings as of June 2025 were Fuguo Two - Year Financial Management Bond, Huitianfu Changtianli Fixed - Open Bond, and Huitianfu China Bond Preferred Investment - Grade Credit Bond Index Initiation [62]. - In terms of the breakdown of stock and hybrid funds, in 25Q2, the investment proportion of flexible - allocation funds increased, while the investment proportion of passive index - type and common stock funds decreased. The investment scale in stock and hybrid funds decreased, with reductions of about 100 million yuan, 380 million yuan, and 70 million yuan in flexible - allocation, passive index - type, and partial - debt hybrid funds respectively [64]. - Wealth management's investment in stock and hybrid funds prefers flexible - allocation and passive index - type funds. As of June 2025, the top three stock and hybrid funds in terms of wealth - management holdings were Penghua Hongkang Hybrid, Guangfa Anying Hybrid, and Dongfanghong CSI Dongfanghong Dividend Low - Volatility Index [69]. 4. Differences in Public - Fund Investment of Different Types of Wealth Management - Fixed - income wealth management has the largest absolute scale of public - fund holdings, while hybrid and equity wealth management have relatively high proportions of public - fund allocation. As of June 2025, fixed - income and hybrid wealth management held public funds worth 1.22 trillion yuan and 0.08 trillion yuan respectively, accounting for 90.1% and 5.98% of the total public - fund investment scale of wealth management. The proportion of public - fund investment in hybrid wealth management was about 11%, higher than the 5% of fixed - income wealth management [71].