Market Overview - The A-share market saw significant gains last week, with the Sci-Tech Innovation 50 Index, Northbound 50 Index, and ChiNext Index rising by 13.31%, 8.4%, and 5.85% respectively, while the bond market experienced a general pullback [2] - The overall funding environment remained stable, with the weighted average price of DR007 at 1.467% and the yield on 10-year government bonds closing at 1.78% [2] Product Performance - The number of products below par is low, but the rate of products below par has increased, with a total of 25,444 public wealth management products, of which 316 have a cumulative net value below 1, resulting in a comprehensive par rate of 1.24% for bank wealth management [3] - The par rate for fixed income public wealth management products is 1.03%, while equity and mixed products have par rates of 28.57% and 4.5% respectively [3] New Product Issuance - A total of 461 wealth management products were issued by 32 wealth management companies from August 18 to August 22, with the highest issuance from joint-stock banks, including 36 from Ping An Wealth Management and 30 from Shanghai Pudong Development Bank Wealth Management [5] - New products primarily consist of R2 (medium-low risk), closed-end net value type, and fixed income public products, with only 5 mixed products issued and no new equity or derivative products [7] Product Pricing - There was a divergence in pricing for short-term and long-term products, with short-term products maintaining or slightly increasing their pricing, while long-term products saw a decline, particularly those with a maturity of over 3 years, which decreased by 40 basis points to 2.15% [7] Revenue Trends - Fixed income wealth management yields continued to decline, with an average net value growth rate of 0.0252% for fixed income products, while mixed and equity products had average growth rates of 0.2489% and 2.2894% respectively [10] - The highest weekly yield for fixed income products was observed in those with a maturity of less than 1 month, averaging a net value growth rate of 0.0424% [10] Cash Management Products - The average annualized yield for cash public wealth management products in RMB, USD, and AUD was 1.334%, 3.900%, and 2.84% respectively, with an increase in the proportion of negative yield products, particularly in fixed income categories [13] - Approximately 28.92% of RMB public wealth management products reported negative returns last week, with the highest proportion of negative yield products being those with a maturity of over 3 years at 48.84% [13] Industry Trends - Wealth management companies are increasingly partnering with rural commercial banks to tap into the growing wealth management demand in lower-tier cities, with over 35 rural commercial banks collaborating with various wealth management subsidiaries [15] - The focus on providing comprehensive service support beyond just products is emphasized for effective engagement with small and medium-sized banks [15] Company Performance - Ping An Wealth Management reported a net profit of 700 million RMB for the first half of 2025, with total assets of 13.548 billion RMB and a net asset value of 13.174 billion RMB, while the balance of managed wealth management products decreased by 4.47% compared to the end of the previous year [16]

Market Overview - The A-share market saw strong gains last week, with the Sci-Tech Innovation 50 Index, Northbound 50 Index, and ChiNext Index rising by 13.31%, 8.4%, and 5.85% respectively, while the bond market experienced a correction [2] - The overall funding environment remained stable, with the weighted average price of DR007 at 1.467% and the yield on 10-year government bonds closing at 1.78% [2] Product Performance - The number of products below par is low, but the rate of products below par has increased, with a total of 25,444 public wealth management products, of which 316 have a cumulative net value below 1, resulting in a comprehensive par rate of 1.24% [3] - The par rates for equity and mixed wealth management products are 28.57% and 4.5% respectively, while fixed income public wealth management products have a par rate of 1.03% [3] - Fixed income products with maturities of over 3 years and 1-2 years have higher par rates of 3.98% and 2.27% respectively [3] New Product Issuance - A total of 461 wealth management products were issued by 32 wealth management companies from August 18 to August 22, with the highest issuance from joint-stock banks [4] - The newly issued products are primarily R2 (medium-low risk), closed-end net value type, and fixed income public products, with only 5 mixed products and no new equity or derivative products [4] - Short-term products (less than 6 months) saw stable or slightly rising pricing, with 1-3 month products increasing by 55 basis points to an average pricing of 2.81%, while products over 6 months saw a decline [4] Product Strategy - Several wealth management companies issued dividend strategy products, with a focus on fixed income products benefiting from policy guidance and low interest rates [5] - The overall performance of dividend assets has shown a "slight rise and differentiation" trend, with traditional banking and port sectors performing well [5] - Market experts believe that the pricing logic for dividend assets is shifting from defensive attributes to fundamental improvements, highlighting the importance of supply constraints and policy catalysts [5] Yield Situation - Fixed income product yields continued to decline, with short-term products performing relatively well, showing an average net value growth rate of 0.0252% for fixed income products [6] - Mixed and equity products had average net value growth rates of 0.2489% and 2.2894% respectively, with the highest yield for fixed income products under 1 month at 0.0424% [6] - The average annualized yield for cash public wealth management products in RMB, USD, and AUD was 1.334%, 3.900%, and 2.84% respectively [6] Negative Yield Situation - The proportion of negative yield products increased, primarily due to fixed income products, with 28.92% of RMB public wealth management products yielding negative returns [7] - The negative yield rates for fixed income, mixed, and equity products were 29.63%, 16.23%, and 5.13% respectively, with nearly 30% of fixed income products experiencing losses [7] - The highest proportion of negative yield products was for those with maturities over 3 years at 48.84%, while the lowest was for products under 1 month at 12.82% [7] Industry Trends - Wealth management companies are increasingly partnering with rural commercial banks to tap into the growing wealth management demand in lower-tier markets [8] - As of August 19, several wealth management subsidiaries have collaborated with over 35 rural commercial banks in regions like Zhejiang, Shanxi, and Shandong [8] - Experts suggest that wealth management companies may need to provide comprehensive support services to small banks, covering the entire service process from pre-sale to post-sale [8] Company Performance - Ping An Wealth Management reported a net profit of 700 million RMB for the first half of 2025, with total assets of 13.548 billion RMB and net assets of 13.174 billion RMB [9] - The balance of wealth management products managed by Ping An Wealth Management was 1,159.989 billion RMB, a decrease of 4.47% compared to the end of the previous year [9]

Market Overview - The bond market experienced an unexpected correction last week, with an overall balanced and loose funding environment. The weighted average of DR007 on August 15 was 1.48%, and the yield on 10-year government bonds closed at 1.75% [2] - In the stock market, major A-share indices surged, with the ChiNext Index, STAR 50 Index, and Shenzhen Component Index recording weekly gains of 8.58%, 5.53%, and 4.55% respectively. The communication, electronics, and non-bank financial sectors led the gains [2] Product Performance - The number of underperforming products remains low, with 25,210 public wealth management products in existence as of August 17, 2025. Among these, 141 products had a cumulative net value below 1, resulting in a comprehensive break-even rate of 0.56% for bank wealth management [3] - The break-even rates for equity and mixed wealth management products were 35.71% and 4.8% respectively, while fixed income public wealth management products had a break-even rate of 0.28% [3] - Fixed income products with 1-2 year and over 3-year terms had slightly higher break-even rates of 0.71% and 0.57% respectively [3] New Product Issuance - A total of 433 wealth management products were issued by 32 wealth management companies from August 11 to August 15, with joint-stock bank wealth management companies leading in issuance. Everbright Wealth issued 39 products, followed by Xinyin Wealth with 30 and Xinyin Wealth with 29 [4] - The newly issued products were primarily R2 (medium-low risk), closed-end net value type, and fixed income public products, with only 4 mixed products issued, accounting for 1.8%. No new equity or financial derivative products were launched [7] Product Pricing and Strategy - Product pricing saw a decline in most terms, except for 3-6 month and over 3-year products, which experienced a rebound. The pricing for 1-2 year and 2-3 year products fell below 2.80%, while products with a term of less than 1 month dropped below 2% [7] - Notably, Xinyin Wealth launched a fixed income enhancement product with a minimum holding period of 90 days and an innovative investment strategy that combines debt assets with quantitative volatility strategies [9] Yield Performance - Fixed income wealth management yields declined, with an average net value growth rate of 0.0511% over the past week. Mixed and equity products had average net value growth rates of 0.2075% and 1.354% respectively [10] - Among fixed income products, those with over 3-year terms had the highest average net value growth rate of 0.0794%, while products with a term of less than 1 month had the lowest at 0.0363% [10] Industry Trends - The scale of bank wealth management saw an unexpected increase of approximately 2 trillion yuan in July, reaching 32.67 trillion yuan, driven by the maturity of high-interest deposits and the relative attractiveness of wealth management products [16] - The growth in non-bank deposits significantly contributed to the increase in wealth management scale, with cash management and short-term fixed income products being the primary beneficiaries [16] - In August, the wealth management scale is expected to exceed 33 trillion yuan, with an annual target of 33.5 trillion yuan [16] - Last week, 16 new ESG-themed wealth management products were launched, indicating a rapid expansion of thematic wealth management offerings [17]

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].