Market Overview - The bond market remains stable with an overall balanced and loose funding environment, with the weighted average of DR007 at 1.50% and the 10-year government bond yield at 1.64% [2] - The A-share market experienced declines due to the Israel-Palestine conflict, with the Shanghai Composite Index, Shenzhen Component Index, and CSI 300 Index dropping by 0.25%, 0.6%, and 0.25% respectively [2] - The non-ferrous metals, oil and petrochemical, and agriculture sectors showed the highest weekly gains [2] Product Performance - As of June 15, 2025, there are 24,038 public wealth management products, with 136 products having a cumulative net value below 1, resulting in a comprehensive break-even rate of 0.57% [3] - The break-even rates for equity and mixed products are 51.28% and 6.51% respectively, while fixed income products have a break-even rate of 0.15% [3] - The break-even rates for fixed income products across various maturities remain low, all below 1%, with the 2-3 year and 6-12 month products having slightly higher rates of 0.35% and 0.2% respectively [3] New Product Issuance - A total of 447 wealth management products were issued by 32 wealth management companies from June 9 to June 13, 2025, with joint-stock banks leading in issuance [4] - New products are primarily R2 (medium-low risk), closed-end net value type, and fixed income public products, with only 10 mixed products issued, accounting for 2.2% [4] - Short-term products with maturities of 6 months or less saw an increase in pricing, with 1-3 month products rising by 0.31 percentage points [4] Yield Performance - All categories of RMB public wealth management products recorded positive returns last week, with fixed income products showing an average net value growth rate of 0.0772% [6] - The average weekly net value growth rates for mixed, equity, and commodity and financial derivative products were 0.2038%, 0.8588%, and 0.942% respectively [6] - Cash management products in RMB, USD, and AUD had average annualized yields of 1.421%, 3.936%, and 3.01% respectively [7] Industry Trends - The total scale of bank wealth management products reached a record high of 31.5 trillion yuan as of the end of May 2025, an increase of 0.19 trillion yuan from April and 1.58 trillion yuan from the end of the previous year [8] - The product structure has significantly changed, with fixed income products becoming the core asset driving the rebound in wealth management scale [8]

Core Viewpoint - The report highlights the current state and trends in the banking wealth management industry, emphasizing the performance of various financial products and the ongoing transformation within the sector [1]. Market Review - The bond market shows a balanced and slightly loose pricing environment, with the DR007 weighted average at 1.69% and the 10-year government bond yield at 1.65%. The equity market remains resilient, with the Shanghai Composite Index and CSI 300 Index increasing by 1.19% and 0.59% respectively [2]. Break-even Situation - The break-even rate for fixed-income wealth management products continues to decline, with a comprehensive break-even rate of 0.93%. The break-even rates for equity and mixed products slightly decreased to 60.53% and 9.03%, while fixed-income public products maintained a low break-even rate of 0.35% [3]. New Issuance Situation - In the week from April 14 to April 20, 31 wealth management companies issued a total of 447 products, with the top three issuers being Ping An Bank Wealth Management, Huaxia Wealth Management, and Minsheng Wealth Management [4]. Product Structure - The newly issued products are primarily R2 (medium-low risk), closed-end net value type, and fixed-income public products. There were no new equity products issued, but a noteworthy "fixed income + equity" product series was launched by Bank of China Wealth Management [6]. Yield Situation - The average net value growth rate for fixed-income wealth management products was 0.0709%, while mixed and equity products saw average growth rates of 0.2379% and 1.6342% respectively. The highest growth rate among fixed-income products was 0.1231% for those with a maturity of over three years [9]. Cash Products - The average annualized yield for cash products in RMB, USD, and AUD was 1.523%, 3.964%, and 3.24% respectively [10]. Negative Yield Situation - Approximately 4.99% of RMB public wealth management products experienced negative returns in the past week, with the highest negative yield observed in financial derivatives at 66.67% [13]. Industry Hotspots - 28 wealth management companies reported an equity investment scale slightly exceeding 500 billion, with over one-third of institutions having zero scale in existing equity products. The total scale of mixed and equity products was 4493.37 billion, with equity products only accounting for 267.75 billion [16]. Industry Scale - As of the end of Q1 2025, the total scale of bank wealth management products reached 29.14 trillion, reflecting a year-on-year growth of 9.41%. There were 215 banking institutions and 31 wealth management companies with active products [17]. Participation in Capital Market - Everbright Wealth Management participated in a directed issuance project for a listed company, marking the first instance of bank wealth management funds directly investing in such projects. This move is expected to enhance investor confidence and promote stable long-term development in the capital market [18].