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 [1][2][8]. 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 [2]. - The regulatory changes aim to clarify boundaries for previously used technical methods that "modified" net value curves, reflecting a shift towards more transparent valuation practices [2][8]. Group 2: Introduction of New Valuation Tools - Several wealth management subsidiaries have begun adopting new third-party valuation tools from companies like China Chengxin Index and Zhongdai Credit Rating, which utilize multi-day transaction averages and credit factor modeling to reduce short-term market volatility [1][2]. - These new valuation methods aim to balance short-term trading information with long-term credit value, addressing the need for more stable net value curves in the face of market fluctuations [2][3]. Group 3: Industry Debate - The introduction of new valuation techniques has sparked a divide within the industry, with supporters arguing they help stabilize investor expectations, while critics express concerns over potential deviations from fair value and misuse for performance enhancement [1][5]. - Some industry insiders warn that excessive reliance on smoother valuation methods could lead to a disconnect between reported values and actual market prices, potentially harming investor interests [6][7]. Group 4: Valuation Methodology Critique - Traditional valuation methods like Zhongdai and Zhongzheng are criticized for their high dependency on immediate transaction data, which can amplify market volatility and lack flexibility in pricing inactive bonds [4][7]. - The debate emphasizes the need for diverse valuation sources to meet the varying demands of the market, particularly in a context where the credit bond market exceeds 50 trillion yuan, yet only a small percentage of bonds are actively traded [7][8]. Group 5: Balancing Fairness and Stability - The ongoing discussions around valuation techniques reflect the challenges faced by the bank wealth management sector as it transitions to a more mature phase, necessitating a balance between fair value representation and market stability [8]. - Future regulatory frameworks are expected to establish clearer standards for third-party valuation institutions, promoting a coexistence of traditional and new valuation methods while ensuring investor protection [8].