Core Viewpoint - The decline in returns from cash management financial products and the rise of daily open financial products reflect a shift in investor preferences in a low-interest-rate environment [1][3]. Group 1: Market Trends - Cash management financial products have seen a decrease in both scale and returns, with the number of such products dropping to 2,237 and total scale decreasing to 6.88 trillion yuan, down over 430 billion yuan from the end of last year [1]. - The average annualized return for cash management products has fallen to 1.54%, a decrease of 33 basis points compared to the end of last year [1]. - In contrast, daily open financial products have gained popularity, with a total scale of 10.92 trillion yuan and 5,200 products available as of June, with an average annualized return of 1.8769% [2]. Group 2: Product Characteristics - Daily open financial products offer daily redemption, flexible investment amounts, and a broader investment range, resulting in slightly higher returns compared to cash management products [2]. - These products are designed to meet short-term funding management needs, with a risk level typically classified as medium to low [3]. - The regulatory environment has tightened for cash management products, leading investors to seek alternatives like daily open financial products [3]. Group 3: Future Outlook - Banks and wealth management subsidiaries are encouraged to optimize services and enhance customer experience, focusing on product line diversification and improved liquidity management [4]. - There is a need for tailored product offerings based on different risk preferences among customer segments [4]. - The shift towards a more service-oriented approach, leveraging technology to enhance efficiency and customer engagement, is essential for maintaining client loyalty [4].

Market Overview - The bond market remained volatile with an overall balanced and loose funding environment, with the weighted average of DR007 at 1.51% and the 10-year government bond yield at 1.67% [2] - The Hong Kong stock market performed well, with the Hang Seng Technology Index and Hang Seng Index increasing by 5.53% and 2.84% respectively, while the A-share market also showed positive performance with the ChiNext Index, Shenzhen Component Index, and CSI 1000 Index rising by 3.17%, 2.04%, and 1.41% respectively [2] Product Performance - The number of underperforming wealth management products remained low, with 24,431 public wealth management products in existence as of July 20, 2025, and a comprehensive underperformance rate of 0.43% [3] - The underperformance rates for equity and mixed wealth management products were 41.46% and 5.45% respectively, while fixed income public wealth management products had an underperformance rate of 0.09% [3] New Product Issuance - A total of 457 wealth management products were issued by 31 wealth management companies from July 14 to July 18, 2025, representing a 17.48% increase from the previous week [4] - The majority of newly issued products were R2 (medium-low risk), closed-end net value type, and fixed income public products, with a slight increase in mixed products to 14, accounting for 3.0% [4] - Pricing for most products increased, with 3-6 month products rising to over 2.5% and products over 3 years rising to 2.35% [4] Target Yield Products - Five institutions launched five target yield public wealth management products, with the "Sunshine Jin Feng Li Enhanced Target Yield Phase 1" from Everbright Wealth Management aiming for a target yield of 2.80% [5] - As of the report date, 256 target yield products had been terminated early this year, with over 90% of these due to reaching their target yield [6] - Among the expired products, the highest target annualized yield was 6.29% for the "Feng Li Ling Dong Rui Yi Target Yield Fixed Term Open 1" from Xingyin Wealth Management [6] Industry Trends - Daily open-type products have become increasingly popular in the low-interest-rate environment, offering broader investment ranges and better yield potential compared to cash management products [10] - The scale of QDII wealth management products has surpassed 200 billion yuan, with 389 QDII products issued, primarily fixed income [11] - Joint venture wealth management companies have significantly increased their management scales this year, with notable growth from firms like BNP Paribas and BlackRock [12]