Core Viewpoint - The report highlights the growth and stability of the Chinese banking wealth management market as of Q3 2025, despite market fluctuations in equities and bonds, with a notable increase in total assets under management and a shift in asset allocation strategies [5][6]. Group 1: Wealth Management Scale and Growth - As of Q3 2025, the total wealth management scale reached 32.13 trillion, with a quarterly increase of 1.46 trillion, reflecting a year-on-year growth of approximately 600 billion, and a growth rate of 9.4% compared to Q2 2025 [6][8]. - The estimated total scale may have exceeded 33 trillion by the end of Q3, driven by the "deposits outflow" phenomenon [6]. Group 2: Product Structure and Composition - The structure of wealth management products remained stable, with fixed-income products accounting for 97.1% of the total, maintaining a narrow fluctuation around this central point since 2024 [7]. - Open-ended wealth management products accounted for 80.6% of the total, with a slight decrease of 0.3 percentage points from Q2 2025, while closed-end products saw an increase in their market share [7]. Group 3: Asset Allocation Trends - By the end of Q3 2025, the total asset allocation reached 34.33 trillion, with a quarterly increase of 1.36 trillion, primarily driven by cash and deposits, which increased by 1.27 trillion [8]. - The proportion of cash and deposits rose to 27.5%, marking a recent high, while bond assets saw a decrease to 53.5% [8]. Group 4: Market Position of Wealth Management Companies - Wealth management companies' market share surpassed 90% for the first time, reaching 91.1% as of Q3 2025, with a continuous expansion of distribution channels [9]. - The number of distribution channels increased to 583, reflecting a year-on-year growth of 35 channels, indicating a strengthening competitive position for wealth management companies [9].

Core Insights - The performance benchmark compliance rate for fixed-income wealth management products with a maturity of less than six months exceeds 90% [1][5][6] Group 1: Product Expiration and Compliance Rates - In the first half of 2025, 31 wealth management companies will have a total of 5,905 closed-end public products maturing, representing a 35.44% increase compared to the first half of 2024 [1] - Among the maturing products, fixed-income products account for 5,759, mixed products for 145, and commodity and financial derivatives for 1 [1] - The compliance rate for the performance benchmark lower limit of fixed-income public products maturing in the first half of 2025 is 83.88%, with a central performance benchmark compliance rate of 50.02% [5][6] Group 2: Performance by Investment Period - The highest number of maturing products falls within the 6-12 month period, totaling 2,074 products, which accounts for 35.1% of the total [3] - The compliance rate for the performance benchmark lower limit for products with a maturity of 3-6 months is the highest at 93.91%, while the compliance rate for products with a maturity of 2-3 years is only 28.17% [5][8] Group 3: Average Yield and Comparison - The average annualized yield for fixed-income wealth management products is 3.09%, with the highest yield for products with a maturity of 1-2 years at 3.42% [6][8] - The average annualized yield for mixed products is 2.14%, which is lower than that of fixed-income products [6][8] - The average annualized yield for closed-end fixed-income public products, excluding foreign currency products, is 2.92% [7] Group 4: Institutional Performance - Institutions such as Bo Yin Wealth Management, Goldman Sachs ICBC Wealth Management, and Guangyin Wealth Management achieved a 100% compliance rate for the performance benchmark lower limit [10] - 17 other institutions also reported compliance rates of 80% or higher for the performance benchmark lower limit [10] - Institutions with lower compliance rates are often affected by rapidly declining static interest rates and higher pricing of products [9]

Core Insights - The performance of fixed-income wealth management products with a maturity of less than six months has exceeded 90% in terms of meeting the lower performance benchmark [1] - In the first half of 2025, 31 wealth management companies had a total of 5,905 closed-end public products maturing, representing a 35.44% increase compared to the first half of 2024 [1] Product Maturity Analysis - The highest number of maturing products falls within the 6-12 month period, totaling 2,074 products, accounting for 35.1% of the total; followed by 3-6 months with 1,814 products (30.7%); and 1-2 years with 1,378 products (23.3%) [3] Performance Metrics - The annualized yield of closed-end fixed-income wealth management products has dropped below 3%, with a total of 5,587 products analyzed, showing a lower performance benchmark compliance rate of 82.46% [5] - The performance lower benchmark compliance rate for fixed-income products maturing in the first half of 2025 is 83.88%, while the performance central benchmark compliance rate is 50.02% [5] - For products with a maturity of less than 6 months, the compliance rate exceeds 90%, with the highest compliance rate of 93.91% for the 3-6 month maturity products [5] Yield Analysis - The average annualized yield for fixed-income wealth management products is 3.09%, with the highest yield for 1-2 year products at 3.42% [6] - Excluding foreign currency products, the average annualized yield for RMB fixed-income products is 2.92% [6] - Mixed products have a lower performance lower benchmark compliance rate of 27.14% and an average annualized yield of 2.14%, underperforming fixed-income products [6] Institutional Performance - Among the 5,446 closed-end fixed-income public products, institutions like Bohai Bank Wealth Management and Goldman Sachs ICBC Wealth Management achieved a 100% compliance rate for the lower performance benchmark [10] - Some institutions with lower compliance rates are affected by rapidly declining static interest rates and the challenges of achieving performance in a generally weak equity market [10]

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]