Core Viewpoint - Financial institutions are adjusting the performance benchmarks of wealth management products in response to the recent interest rate cuts by the People's Bank of China, although the adjustments do not fully reflect the actual decline in underlying asset yields [1][2][3]. Group 1: Adjustments in Performance Benchmarks - Institutions such as Xingyin Wealth Management and Minsheng Wealth Management have lowered the performance benchmarks of several wealth management products, with some upper limits reduced by up to 155 basis points and lower limits by up to 60 basis points [2]. - For instance, Xingyin Wealth Management's product benchmark was adjusted from 2.05%-2.75% to 2.00%-2.70%, effective from May 14 [2]. - Minsheng Wealth Management also reduced its product benchmark from 3.1%-4.0% to 2.6%-3.1%, effective from May 13 [2]. Group 2: Market Response and Asset Allocation - The decline in performance benchmarks is seen as a normal adjustment to align with the downward trend in market interest rates [2][3]. - Financial institutions are encouraged to optimize their asset allocation structures to cope with performance pressures resulting from the declining yields of underlying assets [3][4]. - The supply-demand gap for low-risk, high-yield quality assets may further widen, as banks control deposit rates and guide costs downwards [4]. Group 3: Market Trends and Predictions - The recent interest rate cuts are expected to lead to a new wave of collective rate reductions by banks, potentially increasing the scale of wealth management products to historical highs, possibly exceeding 33 trillion yuan [6]. - In April, the scale of wealth management products increased by 2.1 trillion yuan, reaching 31.3 trillion yuan, surpassing previous levels [6]. - There is a growing preference for "fixed income plus" wealth management products, which are expected to continue expanding in market share due to their risk diversification capabilities [7].

Core Viewpoint - The recent adjustment of performance benchmarks for bank wealth management products reflects a response to market interest rate changes, indicating a new wave of adjustments in the banking wealth management market following the release of news about interest rate cuts [1][2]. Group 1: Adjustments in Performance Benchmarks - Multiple banks and wealth management subsidiaries have announced reductions in the performance benchmarks of their products, with some adjustments exceeding 100 basis points and benchmarks falling below 2% [1]. - For instance, Xinyin Wealth Management adjusted the performance benchmark of its "Tiantian Wanlibao" product from an annualized range of 2.10%-4.05% to 1.50%-2.50% [1]. - Approximately 150 bank wealth management products have adjusted their performance benchmarks since May 7, 2025, indicating a widespread trend in the industry [3]. Group 2: Market Scale and Trends - The total scale of the bank wealth management market has decreased by 0.81 trillion yuan compared to the end of last year, with a current scale of approximately 29.14 trillion yuan [3]. - The industry is facing a dilemma of expanding scale while experiencing shrinking income, as continuous reductions in deposit rates have led many low-volatility wealth management products to be positioned as substitutes for deposits [3]. Group 3: Investor Response and Fee Adjustments - Investors are advised to adapt to the changing market environment by adjusting their investment return expectations and considering their investment capabilities and experiences [4]. - Following the benchmark adjustments, many wealth management institutions have initiated a wave of fee reductions to enhance product attractiveness and signal shared interests with clients [5]. - For example, Jiaoyin Wealth Management announced a reduction in the sales fee rate for one of its products from 0.20% to 0.10% per year for a three-month period [5].

Core Viewpoint - The article discusses the recent adjustments in the bank wealth management market following the People's Bank of China's announcement of a reserve requirement ratio and interest rate cuts, leading to a downward trend in performance benchmarks for various wealth management products [2][4][5]. Summary by Sections Adjustment of Performance Benchmarks - Several banks, including Dongguan Rural Commercial Bank and Tangshan Bank, have announced reductions in the performance benchmarks of their wealth management products, with some adjustments exceeding 100 basis points and lower limits falling below 2% [2][4]. - As of May 12, 150 bank wealth management products have adjusted their performance benchmarks since May 7, reflecting a rapid response to market interest rate changes [5][6]. Impact of Interest Rate Cuts - Following the interest rate cuts, many small and medium-sized banks have lowered their deposit rates, with some long-term fixed deposit rates dropping below 2%, indicating a shift into the "1% era" for most [6][7]. - The adjustments in deposit rates are expected to impact the performance of bank wealth management products, with analysts predicting further reductions in benchmarks [8]. Market Conditions and Challenges - The bank wealth management market, with a total scale of approximately 30 trillion yuan, is facing challenges in a "low interest rate, low spread, and high volatility" environment, leading to a decline in the scale of wealth management products by 0.81 trillion yuan in the first quarter [10][11]. - Analysts note that the decline in wealth management scale is seasonal, with significant growth typically occurring in the second and third quarters [10]. Structural Obstacles and Future Trends - There are structural obstacles to the further development of bank wealth management, including the low-risk nature of many products and the reliance on fixed-income assets, which limits active management opportunities [11][12]. - Long-term, wealth management subsidiaries are expected to diversify their product offerings and increase risk budgets to enhance returns, with a focus on high-yield assets and alternative strategies [12]. Fee Reduction Initiatives - In response to the adjustments in performance benchmarks, several wealth management companies have initiated fee reductions for their products to maintain customer relationships, with some companies announcing temporary fee cuts [13].

Core Viewpoint - The recent interest rate cuts and reserve requirement ratio reductions by the central bank have led to significant adjustments in the bank wealth management market, with many institutions lowering their performance benchmarks for wealth management products, reflecting the challenges posed by a low interest rate environment [1][3]. Group 1: Adjustments in Wealth Management Products - Several banks, including Dongguan Rural Commercial Bank and Tangshan Bank, have announced reductions in the performance benchmarks for their wealth management products, with some adjustments exceeding 100 basis points and rates falling below 2% [1][2]. - On May 12, Xinyin Wealth Management adjusted the performance benchmarks for multiple products, with the annualized return for one product dropping from 2.10%-4.05% to 1.50%-2.50% [2]. - A total of 150 bank wealth management products have adjusted their performance benchmarks since May 7, indicating a widespread response to market rate changes [2][3]. Group 2: Impact of Central Bank Policies - The People's Bank of China announced a 0.5 percentage point cut in the reserve requirement ratio and a 0.1 percentage point reduction in policy interest rates, prompting banks to lower deposit rates [3]. - Many small and medium-sized banks have responded quickly, with some long-term fixed deposit rates now falling below 2%, marking a shift into the "1.0 era" for deposit rates [3][4]. Group 3: Market Challenges and Trends - The bank wealth management market, with a total scale of approximately 29 trillion yuan, is facing pressure due to low interest rates, low spreads, and high volatility, leading to a reduction of 0.81 trillion yuan in the first quarter [5][6]. - Analysts suggest that the decline in wealth management scale is seasonal, with significant growth typically occurring in the second and third quarters [6]. - The low-risk nature of many wealth management products has led to a structural challenge, with 95% of products being fixed-income, limiting the potential for active management and profitability [6][7]. Group 4: Fee Reductions in Response to Market Conditions - In response to the adjustments in performance benchmarks, several wealth management companies, including China Merchants Bank Wealth Management and Minsheng Wealth Management, have initiated a wave of fee reductions to maintain customer relationships [8]. - For instance, China Merchants Bank announced a reduction in the sales commission for one of its products from 0.20% to 0.10% per year, effective from May 20 [8].