Core Viewpoint - The rapid achievement of yield targets for dollar-denominated financial products has led to early terminations, while institutions are aggressively expanding their presence in the dollar wealth management market despite declining yields [1][2][3]. Group 1: Market Trends - The number of newly issued dollar-denominated financial products reached 161 in June 2025, marking a year-on-year increase of 31.97% [1][2]. - The issuance of dollar wealth management products is expected to remain high in July 2025, with 68 products already launched by mid-month [2]. - The average annualized yield for dollar wealth management products has been declining, with June 2025 showing significant year-on-year decreases compared to June 2024 [3][4]. Group 2: Reasons for Institutional Interest - Institutions are seeking strategies to enhance yield, driven by expectations of potential interest rate cuts by the Federal Reserve and opportunities in U.S. Treasury investments [3][4]. - The demand for dollar-denominated assets is rising due to global economic uncertainties, including inflation and geopolitical tensions, making dollar assets attractive for their liquidity and safe-haven status [3][4]. Group 3: Yield Decline Factors - The decline in dollar wealth management yields is attributed to fluctuations in dollar asset prices, with the ICE U.S. Dollar Index experiencing a nearly 11% drop in the first half of 2025, the largest decline for that period since 1973 [4][5]. - Policies from the Trump administration, including tariffs and economic measures, have contributed to the rapid depreciation of the dollar, affecting market confidence [4][5]. Group 4: Investment Strategy Recommendations - Investors are advised to focus on fixed-income asset allocations to balance risks and returns, while also implementing measures to hedge against currency risks [6][8]. - Different types of dollar wealth management products are available, including those focused on dollar deposits, U.S. Treasury bonds, and overseas equities, each catering to varying risk appetites [7][8]. - Investors should consider product characteristics, such as stop-loss mechanisms, and be cautious of market noise when making investment decisions [8][9].