Core Insights - In the first half of 2025, banks lowered deposit rates, enhancing the attractiveness of wealth management products, leading to a significant shift of funds from deposits to these products [1][2] - The issuance of net value-based wealth management products increased by over 40% year-on-year, with 10,941 products launched by 32 companies compared to 7,805 in the first half of 2024 [1][2] - The product structure is shifting towards multi-asset and multi-strategy approaches, with a notable increase in the issuance of mixed and equity products [4][5] Product Issuance - The number of newly issued products reached 10,941, with a year-on-year increase of over 40% [2] - Leading issuers include Huaxia Wealth Management with 820 products, followed by Xingyin Wealth Management and Everbright Wealth Management, each exceeding 700 products [2] - The majority of new products are public offerings, accounting for approximately 90.6%, while private offerings make up 9.4% [4] Investment Characteristics - Fixed-income products represent 97.4% of the total, a slight decrease of 0.9 percentage points year-on-year, while mixed and equity products have seen an increase in issuance [4] - The proportion of closed-end net value products has dropped significantly to 59.9%, while open-end products have risen to 40% [4] - Short-term products (less than one month) now account for 22.2% of new issuances, up 5.5 percentage points from the previous year [4] Pricing Trends - The performance benchmark for wealth management products has been on a downward trend, with one-month products dropping below 2%, recorded at 1.88% in June 2025 [7][8] - The pricing for products with longer durations has also decreased, with two to three-year products falling to 2.71% and three-year products below 2.5% [7][8] Fundraising Dynamics - The total fundraising for newly issued products in the first half of 2025 was approximately 17,579.06 billion yuan, with an average fundraising size of 2.69 million yuan, down 13.5% from 3.11 million yuan in the same period of 2024 [8][9] - Only one product exceeded 100 billion yuan in fundraising, the "Anying Xiang Fixed Income Stable Profit 14-Month Series" from Xinyin Wealth Management [9][11] - The competition for fundraising has intensified, with the top ten products raising a total of 823.2 billion yuan, a year-on-year increase of 24.88% [9]

Investment Rating - The investment rating for the banking industry is "Positive" [2] Core Insights - The report highlights a recent increase in the closed-end wealth management product achievement rate, which reached 83.17% by the end of April 2025, while the open-end product achievement rate decreased to 54.80% [15][16] - The overall market's wealth management product net loss rate was recorded at 2.23%, showing a slight decrease of 0.27 percentage points compared to the previous month [12] - The number of net value-type wealth management products has decreased to 18,600, reflecting a month-on-month decline of 1.85% [22] - The issuance of wealth management products in April 2025 saw a significant year-on-year increase of approximately 44.83%, totaling 5,990 products [39][42] Summary by Sections 1. Wealth Management Market Overview - The broken net rate as of the end of April was 2.23%, indicating a stable trend after a peak in December 2022 [12] - The achievement rate for closed-end products increased to 83.17%, while open-end products saw a decline to 54.80% [15][16] 2. Net Value-Type Wealth Management Products - The total number of net value-type products decreased to 18,600, down 1.85% from the previous month [22] - The proportion of net value-type products with a risk level of R2 is the highest at 77.58% [25] 3. Issuance Market Situation - The issuance of wealth management products in April 2025 increased significantly, with 5,990 products issued, marking a 44.83% year-on-year growth [39] - Non-principal guaranteed products have surged, while principal guaranteed products have nearly disappeared from the market [42] - The largest share of newly issued products in April was for the 12-24 month term, accounting for 25.03% of total issuances [45] 4. Wealth Management Returns - As of April 6, 2025, the expected annualized returns for various term wealth management products were 2.36% for 3 months, 2.54% for 6 months, and 2.50% for 1 year [4] 5. Wealth Management Company Products - In April 2025, 32 wealth management companies issued a total of 5,077 products, with a slight increase from the previous month [5] - The leading company in terms of the number of existing products is Xingyin Wealth Management, holding a market share of 9.59% [5]

Investment Rating - The investment rating for the banking industry is "Positive" [2] Core Insights - The report highlights a recent increase in the proportion of open-ended wealth management products, with the closed-end product reach rate at 81.59% and the open-end product reach rate at 55.50% as of the end of March 2025 [3][16][17] - The overall market's wealth management product break-even rate is 2.49%, showing a decrease of 1.67 percentage points compared to the previous month [3][13] Summary by Sections 1. Wealth Management Market Overview - The break-even rate for wealth management products as of March 2025 is 2.49%, down from a peak of 20.60% in December 2022 [13] - The reach rate for closed-end wealth management products is 81.59%, while the open-end products have a reach rate of 55.50% [16][17] 2. Net Value Wealth Management Products Tracking - The number of existing net value wealth management products decreased to 19,000 as of March 2025, a decline of 1.67% from the previous month [4][24] - The proportion of fixed-income products among net value products is 91.78% [30] 3. Issuance Market Situation - In March 2025, the total number of newly issued wealth management products was 6,191, representing a year-on-year increase of approximately 46.95% [40] - Non-principal guaranteed wealth management products have seen a significant rise, while principal guaranteed products have nearly disappeared [43] 4. Wealth Management Yield Situation - As of March 31, 2025, the expected annualized yields for 3-month, 6-month, and 1-year wealth management products are 2.34%, 2.71%, and 3.03%, respectively [5] - The yield for 1-year wealth management products from city commercial banks has increased compared to the previous month [15] 5. Investment Recommendations - The report suggests focusing on national banks with solid fundamentals and low valuations, such as Postal Savings Bank, Agricultural Bank, and CITIC Bank, particularly in the context of state-owned enterprise reforms [8] - It also highlights regional banks like Qilu Bank and Ningbo Bank that are expected to perform well due to ongoing recovery in small and micro enterprises [8]