Investment Rating - The industry investment rating is maintained at "Overweight" [4] Core Insights - The bank wealth management market experienced steady growth in the first half of 2025, with a total scale of 30.67 trillion yuan, representing a year-on-year increase of 7.53%. The scale of wealth management companies reached 27.48 trillion yuan, up 12.98% year-on-year. This growth is attributed to the migration of funds due to low deposit interest rates, indicating potential for continued stable expansion [6][14] - The structure of wealth management products shows that fixed-income products account for 97.20% of the total scale, with a slight decrease of 0.13 percentage points since the beginning of the year. This decline is expected to be related to bond market volatility and improved conditions in the equity market [6][16] - In terms of asset allocation, there has been an increase in cash and deposit assets as well as public funds, while allocations to bonds and interbank certificates of deposit have decreased. Specifically, the allocation ratios for bonds, interbank certificates, and equity assets have decreased by 1.7%, 0.6%, and 0.5% to 41.8%, 13.8%, and 2.4%, respectively [6][20] Wealth Management Product Yield - The yield of cash management wealth management products has continued to decline, with a 7-day annualized yield of 1.44% in July, down 6 basis points from the previous month and 40 basis points from December of the previous year. In comparison, the yield of money market funds was 1.25%, down 9 basis points month-on-month and 31 basis points year-on-year [8][24] - The average annualized yield for short-term pure fixed-income wealth management products was 2.15%, up 0.03 percentage points from the previous month, while the yields for medium-term and long-term products decreased [9][27] - The overall break-even rate for fixed-income + wealth management products increased to approximately 2.4% in July, indicating a rise from the previous month, although the number of deeply discounted products remains low [10][35] Market Performance - Over the past 12 months, the industry has shown a relative return of 13.49% and an absolute return of 25.64%, indicating strong performance compared to the market benchmark [5]

Core Insights - The banking wealth management market in China has shown growth in both scale and investor participation, with a total size of 30.67 trillion yuan as of June 2025, reflecting a 2.38% increase from the beginning of the year and a 7.53% year-on-year growth [2] - The number of investors holding wealth management products reached 136 million, an increase of 8.37% from the start of the year, generating a total return of 389.6 billion yuan for investors in the first half of 2025 [2] - Personal pension wealth management products have seen significant growth, with over 1.439 million accounts opened, a 46.2% increase since the beginning of the year, and a total purchase balance of 110.36 billion yuan [2][11] Wealth Management Product Structure - The wealth management market has a strong focus on stability, with fixed-income products dominating, accounting for 97.20% of the total scale, and low-risk products making up 95.89% of the market [4][5] - The average duration of newly issued closed-end wealth management products ranged from 377 to 489 days, with closed-end products over one year accounting for 72.86% of all closed-end products, an increase of 5.71 percentage points from the beginning of the year [8][9] Factors Influencing Investor Preferences - The preference for low-risk products is driven by the uncertain global economic environment and domestic market volatility, leading investors to favor stable returns [5][6] - The shift in investor demographics towards younger, more educated individuals is expected to gradually change the client structure, allowing for a broader acceptance of mixed and equity products over the next 5 to 10 years [6] Pension Wealth Management Products - The rapid development of personal pension wealth management products is supported by government policies, with an average annualized return exceeding 3.4% [11][12] - The market has seen the introduction of multiple pension products, with six wealth management companies launching a total of 35 pension products, managing over 15.16 billion yuan [12] Recommendations for Investors - Investors are advised to diversify their asset allocation based on their risk tolerance and retirement goals, focusing on products with stable historical performance and controlled volatility [12][13]

Core Viewpoint - The banking wealth management market in China has shown steady growth in the first half of 2025, with a notable increase in personal pension wealth management products driven by policy support and changing demographics [2][10]. Group 1: Market Overview - As of June 2025, the total scale of the banking wealth management market reached 30.67 trillion yuan, an increase of 2.38% from the beginning of the year and 7.53% year-on-year [2]. - The number of investors holding wealth management products reached 136 million, growing by 8.37% since the start of the year [2]. - Wealth management products generated a total return of 389.6 billion yuan for investors in the first half of 2025 [2]. Group 2: Product Structure - Fixed income products dominate the market, accounting for 97.20% of the total scale of wealth management products, while low-risk products represent 95.89% of the total scale [4]. - The proportion of closed-end products with a maturity of over one year increased to 72.86%, up by 5.71 percentage points from the beginning of the year [8]. - Cash management products saw a decline, with their scale at 6.40 trillion yuan, representing 25.79% of all open-end wealth management products, down by 4.38 percentage points since the start of the year [8][9]. Group 3: Personal Pension Wealth Management - The number of investors opening personal pension wealth management accounts exceeded 1.439 million, a growth of 46.2% since the beginning of the year [10][12]. - Personal pension wealth management products provided an average annualized return of over 3.4% [10]. - The market has seen the launch of 35 personal pension wealth management products with a total management scale exceeding 15.16 billion yuan [12]. Group 4: Investor Preferences and Trends - Investors are increasingly favoring low-risk, stable-return products due to the low interest rate environment and market volatility [5][6]. - The shift in investor demographics towards younger, more educated individuals is expected to gradually change the client structure over the next 5 to 10 years [6]. - The development of personal pension products is supported by government policies aimed at enhancing the third pillar of pension finance, which includes tax incentives for personal pension investments [12].

Core Insights - The banking wealth management market reported a total scale of 30.67 trillion yuan as of June 2025, reflecting a 2.38% increase from the beginning of the year and a 7.53% year-on-year growth [1] - The average annualized yield of wealth management products in the first half of 2025 was 2.12%, generating a total return of 389.6 billion yuan for investors, which is a 14.18% increase compared to the same period last year [1][4] Group 1: Product Types and Performance - Fixed income products dominate the market, with a total scale of 29.81 trillion yuan, accounting for 97.2% of the total wealth management products, showing a slight decrease of 0.13 percentage points from the beginning of the year but an increase of 0.32 percentage points year-on-year [2] - Cash management products have seen a contraction, with a scale of 6.4 trillion yuan, representing 25.79% of open-ended wealth management products, down 4.38 percentage points from the beginning of the year and 7.09 percentage points year-on-year [2][3] Group 2: Market Trends and Future Outlook - The overall scale of wealth management products is expected to exceed 33 trillion yuan by the end of the year, driven by factors such as declining deposit rates and continuous innovation from wealth management subsidiaries [5] - There is a growing demand among investors for higher yields and reduced net value volatility, with a focus on enhancing yield being the primary concern [5] - The personal pension wealth management products have shown significant growth, with a balance of 15.16 billion yuan as of June 2025, up 64.7% from the beginning of the year, and over 1.1 trillion yuan in cumulative purchase balance [6][7]

Report Summary 1. Industry Investment Rating The report does not mention the industry investment rating. 2. Core Viewpoints - The scale of wealth management products has returned to 30 trillion yuan, and it is expected to remain stable above 30 trillion in the second half of 2025. The scale of hybrid products is expected to continue to rise. [2] - The number and scale of wealth management products of bank institutions have decreased significantly, and the market is concentrating towards wealth management companies. It is expected that by the end of 2026, the wealth management market will continue to shift to wealth management companies. [2] - In the first half of 2025, wealth management products increased their allocation of public - offering funds and reduced their allocation of bonds and inter - bank certificates of deposit. The proportion of public - offering funds may continue to increase in the second half of the year. [2] - In the low - interest - rate era, the average yield of wealth management products has weakened, and the performance comparison benchmark of newly issued products of wealth management companies has continued to decline. [2] - The bond market may not have a trending market in the second half of 2025. It is recommended to focus on certain types of bonds and conduct interval trading. [2] 3. Summary by Related Content 3.1 Wealth Management Product Scale - As of H1 2025, the scale of the bank wealth management market was 30.67 trillion yuan, an increase of 0.72 trillion yuan compared to the end of 2024. The scale of cash - management products was 6.4 trillion yuan, a decrease of 0.9 trillion yuan compared to the end of 2024, and the proportion dropped from 24.4% to 20.87%. The scales of fixed - income (excluding cash), hybrid, and equity wealth management products were 23.4 trillion, 0.8 trillion, and 0.1 trillion yuan respectively, with proportions of 76.3%, 2.5%, and 0.2% respectively, increasing by 3.38 pct, 0.07 pct, and 0.02 pct respectively compared to the end of 2024. [2] - It is expected that the scale of wealth management products in the second half of 2025 may remain stable above 30 trillion yuan. [2] 3.2 Market Concentration - By the end of H1 2025, there were 226 wealth management institutions in the market, including 194 bank institutions and 32 wealth management companies, a decrease of 24 and an increase of 1 (Zheshang Bank Wealth Management) compared to the end of the previous year respectively. [2] - In terms of the number of products in existence, there were 13,900 products of bank institutions and 27,900 products of wealth management companies, a decrease of 2,100 and an increase of 3,600 respectively compared to the end of the previous year. [2] - In terms of the scale of products in existence, the scales of bank institutions and wealth management companies were 3.19 trillion and 27.48 trillion yuan respectively, with year - on - year changes of - 24.0% and + 13.0%. [2] 3.3 Asset Allocation - From the end of 2024 to H1 2025, the scales of bonds and inter - bank certificates of deposit decreased from 13.03 trillion and 4.31 trillion yuan to 12.82 trillion and 4.23 trillion yuan respectively. The allocation ratio of interest - rate bonds increased from 2.33% to 3.01%, and the scale reached 0.99 trillion yuan in H1 2025. The allocation ratio of credit bonds decreased from 41.11% to 38.79%, and the scale reached 12.79 trillion yuan in H1 2025. The allocation of public - offering funds increased significantly by 0.42 trillion yuan (the proportion in H1 2025 was 4.2%, an increase of 1.3 pct compared to the end of 2024) to 1.29 trillion yuan. [2] - The proportions of cash and bank deposits and non - standard debt assets in H1 2025 were 24.8% and 5.5% respectively, an increase of 0.9 pct and 0.1 pct respectively compared to the end of 2024. [2] 3.4 Product Yield - The annualized yield of wealth management products has been declining since H1 2023. In the first half of 2025, the average annualized yield of wealth management products was 2.12%, a decrease of 0.53 pct compared to the full - year yield in 2024. [2] - According to Puyi Standard, the performance comparison benchmark of newly issued products of wealth management companies has continued to decline, from 3.21% in Q1 2024 to 2.56% in Q2 2025, and it is expected that the lower limit of the benchmark may reach 2.0%. [2] 3.5 Bond Market Outlook - The report is bullish on the bond market in the short term, expecting the 10 - year Treasury bond yield to return to around 1.65%. After the adjustment, it is recommended to focus on certain types of bonds such as urban investment bonds, capital bonds, and insurance subordinated bonds. [2] - It is predicted that the 10 - year Treasury bond yield will fluctuate in the range of 1.6% - 1.8% in the second half of the year, and there may not be a trending market. The possibility of a significant bear market in the bond market is low, and it is also difficult for the bond market to have a significant bull market. It is recommended to conduct interval trading. [2]

Core Insights - The report indicates that the scale of the wealth management market reached 30.67 trillion yuan by the end of June 2025, marking a 4.54% increase from the beginning of the year [2] - The average annualized yield of wealth management products decreased to 2.12%, down 0.53 percentage points from the previous year, yet the number of investors increased significantly [12][13] Market Overview - As of June 2025, the total number of wealth management products in existence was 41,800, with a total scale of 30.67 trillion yuan, reflecting a 4.54% increase since the start of the year [3] - Fixed income products accounted for 97.2% of the total wealth management product scale, with a total scale of 29.81 trillion yuan, although cash management products saw a significant decline [3][4] Product Performance - The average annualized yield for fixed income products reached 2.79%, benefiting from rising bond prices despite declining interest rates [3] - Cash management products experienced a 12.3% decrease in scale, dropping to 6.4 trillion yuan, attributed to lower yields [3][5] Investor Trends - By the end of June 2025, the number of investors holding wealth management products rose to 136 million, an increase of 10.48 million since the beginning of the year [12][13] - Individual investors still dominate the market, comprising 98.7% of the total, while institutional investors showed a notable increase [12] Company Performance - Among the wealth management companies, 32 firms held a total scale of 27.48 trillion yuan, with a year-to-date increase of 4.44% [7] - Notable growth was observed in companies like Huaxia Wealth Management and Hengfeng Wealth Management, which reported double-digit growth rates [8][9] Regulatory Environment - Regulatory bodies have been encouraging long-term capital to enter the market, with initiatives aimed at addressing barriers to investment [4] - The trend indicates a gradual reduction of wealth management activities among unlicensed rural commercial banks, with some banks transitioning to product distribution [11]

Core Viewpoint - The report indicates a steady growth in the banking wealth management market, with a total outstanding scale of 30.67 trillion yuan as of mid-2025, reflecting a 2.38% increase from the beginning of the year and a 7.53% year-on-year growth [1]. Group 1: Market Overview - As of mid-2025, the total number of wealth management products issued reached 16,300, with total funds raised amounting to 36.72 trillion yuan [1]. - The average annualized return on wealth management products for the first half of 2025 was 2.12%, a decrease from the previous year's average return of 2.65% [3]. - The total income generated for investors in the first half of 2025 was 389.6 billion yuan, representing a 14.18% increase compared to the same period last year [2][3]. Group 2: Product Composition - Fixed-income products remain the dominant category in the wealth management market, accounting for 97.2% of the total outstanding scale as of mid-2025, which is an increase of 0.32 percentage points year-on-year [3]. - The trend towards "fixed income plus" products is expected to grow, driven by declining interest rates, with an anticipated increase in overall wealth management scale exceeding 1 trillion yuan for the year [3]. Group 3: Investor Demographics - The number of investors holding wealth management products reached 136 million by the end of June 2025, marking an 8.37% increase from the beginning of the year [5]. - Among individual investors, those with a risk preference classified as "aggressive" (level 5) saw a notable increase, rising by 1.25 percentage points compared to the previous year [7]. - The regulatory framework is evolving, with new guidelines set to take effect in February 2026, emphasizing the importance of understanding customer risk profiles and appropriate product offerings [7].

Group 1 - The bank wealth management market saw an increase in issuance, with 1,215 new RMB wealth management products launched from June 23 to June 29, representing a week-on-week increase of 112 products [1] - Among the new products, 879 were closed-end and 336 were open-end, with wealth management subsidiaries being the main issuers, accounting for 83% of the total [1] - Industrial Bank Wealth Management and Postal Savings Bank Wealth Management participated as cornerstone investors in the Hong Kong IPO of Sanhua Intelligent Controls, with each receiving an allocation of $20 million [2][3] Group 2 - The majority of the new wealth management products, 1,183 out of 1,215, were fixed-income products, making up 97% of the total, primarily investing in interbank deposits, bank deposits, and bonds [2] - Mixed-asset products also saw an increase, with 22 new products launched, up by 10 from the previous week, focusing on fixed-income assets while keeping equity investments below 80% [2] - The participation in the Sanhua Intelligent Controls IPO reflects a strategic move by wealth management companies to support private enterprises and enhance investment in technology sectors [3][4] Group 3 - Industrial Bank Wealth Management has introduced a "fixed income + Hong Kong IPO" strategy product to enhance returns by focusing on investment opportunities in key industries [3] - Postal Savings Bank Wealth Management aims to improve investor satisfaction by developing diverse strategies and providing a range of Hong Kong equity-linked products [4]

Core Viewpoint - The banking wealth management market in China has reached a significant milestone with a total scale of 31.5 trillion yuan, marking the end of the transitional period of asset management regulations and the beginning of a new phase of high-quality development [1][2] Group 1: Industry Development - The banking wealth management industry is facing new demands for wealth management and needs to address three core questions: how to innovate products to meet customer needs, how to enhance asset allocation capabilities for stable returns, and how to deepen interaction with the real economy [2] - The industry has evolved from initial expansion to a more regulated and value-driven approach, becoming a crucial pillar in the asset management sector and playing an important role in supporting the real economy and enhancing residents' income [1] Group 2: Product Innovation - Banking wealth management products are categorized into four main types: fixed income, mixed, equity, and commodities/derivatives, with fixed income products being the most popular among investors [3] - In a low-interest-rate environment, wealth management companies are actively seeking innovation to adapt to changing financial conditions, focusing on low-volatility products to meet investor demand for stable returns [3][4] - Companies are launching thematic products aligned with national strategies, such as those focused on the Belt and Road Initiative and rural revitalization, to better serve targeted customer groups [4] Group 3: Investment Strategies - The investment strategies of wealth management companies are shifting from traditional cycle-driven approaches to those driven by industry trends and policy incentives, enhancing their equity investment capabilities [6] - Companies are optimizing asset allocation by diversifying into alternative assets like REITs and convertible bonds to improve yield elasticity [7] - The focus on enhancing service to the real economy is evident, with significant investments directed towards key sectors, supporting approximately 20 trillion yuan in the real economy through various asset classes [8][9] Group 4: Future Outlook - The future development of banking wealth management products is expected to feature more diversified product positioning, a balanced risk-return structure, and a focus on thematic products that support the real economy [5][10] - Companies are encouraged to strengthen their integration with parent banks to meet the customized service needs of high-net-worth clients while also providing standardized products for the general public [10]

Core Viewpoint - Recent adjustments in fee rates by leading bank wealth management companies reflect a strategy to mitigate investor sensitivity to declining yields, driven by falling policy rates and lower fixed-income asset returns. This "price for volume" approach is seen as a survival tactic in the current market environment [1]. Group 1: Company Performance - By the end of 2024, China's asset management scale is expected to exceed 150 trillion yuan, with bank wealth management accounting for nearly one-fifth, yet it has not surpassed public funds to reclaim its former status as the largest segment [1]. - As of March 2025, the product scale managed by China Merchants Bank Wealth Management (招银理财) was 2.36 trillion yuan, a decrease of 4.45% from the end of 2024. This decline is notable as it marks the first financial regulatory penalty received by the company since its establishment nearly five years ago [1][2]. - 招银理财 received a fine of 8.5 million yuan for regulatory violations, including inadequate identification of underlying assets and non-compliance in information disclosure. This penalty is the largest single fine issued to a bank wealth management subsidiary in 2024 [1][2]. Group 2: Market Trends - The bank wealth management sector has seen a significant decline in product rates, with an overall decrease of approximately 8% in management fees in the first quarter of 2024. Fixed-income and mixed products experienced the most substantial drops, at 7.82% and 11.65%, respectively [9]. - The number of bank wealth management products increased to 42,431 by June 23, 2024, up by over 1,700 from the beginning of the year, with an overall scale of approximately 31.32 trillion yuan [5]. - In response to market conditions, 招银理财 has reduced fixed investment management fees for several products, with one product's fee dropping from 0.2% to 0.01% (annualized) for a limited time [6][8]. Group 3: Strategic Adjustments - The strategy of lowering fees is primarily aimed at attracting customers and responding to short-term pressures from interest rate cuts. This trend may lead to a normalization of ultra-low fee products among leading wealth management firms [9]. - The shift towards lower fees is seen as a temporary measure to enhance market share and customer loyalty, while the long-term focus will need to shift towards investment research capabilities and product innovation for sustainable competition [9].