Core Viewpoint - The introduction of floating management fee rate products by bank wealth management subsidiaries marks a shift from fixed fee models, promoting a positive alignment between managers' performance and investor returns, thus fostering healthy competition and development in the wealth management industry [1][5]. Group 1: Product Features - The "Zhaozhi Ruiyuan Balanced (Anying Youxuan) 68th Phase" floating management fee product launched by China Merchants Bank on July 8 features a fixed management fee rate of 0.25%, significantly lower than the typical 0.4% to 0.6% for similar products, with a performance-linked fee structure [2][3]. - The product has a risk level of R3 (medium risk) and a closed period of three years, with an asset allocation of 0% to 40% in equity assets [2]. Group 2: Market Response - The product sold out on its first day of availability, indicating high investor interest and enthusiasm [4]. Group 3: Industry Implications - The floating management fee model is seen as a way to alleviate fixed fee burdens during poor market performance while allowing managers to earn higher rewards during strong performance, thus aligning interests between investors and managers [5]. - This model is particularly attractive in volatile or structural market conditions, helping wealth management subsidiaries expand their management scale and incentivize research teams to enhance performance [5][6]. Group 4: Requirements for Implementation - Bank wealth management subsidiaries need strong investment research capabilities, particularly in equity investments, to achieve excess returns that support floating fees [6]. - Enhanced risk management capabilities are essential to avoid excessive risk-taking while effectively controlling drawdowns during market fluctuations [6]. - A robust operational and IT system is necessary for real-time performance calculations and compliance with complex fee structures, alongside effective communication with investors regarding fee structures and performance [6].