Core Viewpoint - The retail deposit growth of several listed banks has slowed down significantly, prompting banks to adjust their strategies towards wealth management to mitigate the impact of deposit outflows [1][2][5][6]. Group 1: Retail Deposit Growth Comparison - In the first half of 2025, several banks experienced a notable decline in retail deposit growth compared to the same period in 2024, with specific decreases of 3.43 percentage points for China Merchants Bank and 3.73 percentage points for Ping An Bank [1][6]. - Other banks such as Beijing Bank, Ningbo Bank, Hangzhou Bank, and Suzhou Bank also saw significant reductions in their retail deposit growth rates, with declines ranging from 4.57 to 9.88 percentage points [1][6]. Group 2: Interest Rate Adjustments - Since September, a growing number of local small and medium-sized banks have lowered their deposit interest rates, with some banks announcing reductions of up to 35 basis points [1][3]. - This trend follows a broader "rate cut wave" initiated by large state-owned banks earlier in the year, aimed at alleviating pressure on net interest margins [3][4]. Group 3: Wealth Management Strategies - In response to the noticeable outflow of retail deposits, banks are increasingly focusing on wealth management to grow their assets under management (AUM) [2][7]. - The performance of cash management and fixed-income bank wealth management products, with annual yields between 2% and 3%, has led many customers to shift their investment strategies [2][7]. - Banks are also expanding their offerings in public funds and cash management products, which are perceived as lower risk and more cost-effective compared to traditional fixed-term deposits [7].

Core Insights - The performance of bank wealth management institutions in the first half of the year shows significant differentiation in product management scale, with joint-stock and state-owned banks leading the market [1][3] - The industry landscape is characterized by "head concentration, foreign capital rise, and regional differentiation," with top banks demonstrating clear advantages [1][4] - The total outstanding scale of wealth management products in China reached 30.67 trillion yuan, reflecting a 2.38% increase from the beginning of the year and a 7.53% year-on-year growth [4] Product Management Scale - Joint-stock bank wealth management subsidiaries dominate the top three positions in product management scale, with figures exceeding 2 trillion yuan: 2.46 trillion yuan for China Merchants Bank, 2.32 trillion yuan for Xinyin Wealth Management, and 2.13 trillion yuan for XinYin Wealth Management [3] - There are 13 members in the "trillion club," including 6 state-owned and 7 joint-stock bank wealth management subsidiaries [3] - Some local bank wealth management subsidiaries have significantly lower scales, with Qingyin Wealth Management at 189.48 billion yuan [3] Profitability - The top three wealth management companies by net profit are China Merchants Bank Wealth Management (1.364 billion yuan), Bank of China Wealth Management (1.358 billion yuan), and Agricultural Bank of China Wealth Management (1.273 billion yuan) [3] - A total of 20 wealth management companies reported a combined net profit of 15.179 billion yuan for the first half of the year [3] Investment Focus - Wealth management companies are focusing on supporting the real economy, developing ESG (Environmental, Social, and Governance) initiatives, and expanding distribution channels [5][6] - For instance, China Merchants Bank reported that its wealth management assets supporting the real economy amounted to 1.93 trillion yuan [5] - Ping An Wealth Management indicated that by June 2025, it had provided over 280 billion yuan in funding to the real economy and over 110 billion yuan for ESG initiatives [5] Distribution Channel Expansion - Companies like Xinyin Wealth Management and Minsheng Wealth Management have reported successful expansion of their distribution channels [6] - Xinyin Wealth Management has established over 540 partnerships with small and medium-sized banks, with a distribution balance of 237.963 billion yuan, an increase of 47.801 billion yuan from the previous year [6] - Minsheng Wealth Management added 20 new distribution institutions, with off-balance sheet distribution growing by 46.37% compared to the previous year [6] Strategic Recommendations - In the context of "deposit migration," wealth management companies are advised to enhance collaboration across product, channel, and service dimensions [6] - Product strategies should focus on tiered design to meet diverse needs, balancing stable performance with opportunities in the equity market [6] - Channel strategies should leverage local banks' advantages to penetrate broader customer bases, while service strategies should aim to attract potential clients through reduced fees and enhanced investor education [6]

Core Viewpoint - The article discusses the significant decline in bank deposit interest rates, which have dropped to historical lows, and the resulting pressure on banks to meet mid-year assessment targets for deposit accumulation [1][2]. Group 1: Deposit Rate Decline - As of May, the average interest rates for 3-year and 5-year fixed deposits have decreased to 1.711% and 1.573%, respectively, with a month-on-month decline of over 30 basis points [3][4]. - All types of fixed deposits have entered the "1% era," with 3-month deposits averaging 1.004% and 6-month deposits at 1.212% [3]. - The decline in deposit rates has led to a noticeable drop in the scale of fixed deposit accumulation, increasing the pressure on banks to meet their mid-year deposit targets [2][6]. Group 2: Bank Strategies and Responses - Banks are actively marketing various financial products, including wealth management and insurance, to compensate for the lack of deposit growth [2][8]. - There is a notable increase in the activity of fund brokers, who are offering high prices to help banks meet their deposit targets, with reports of daily returns exceeding 91% for these transactions [6][7]. - Some banks have resorted to promotional activities, such as offering gifts for deposits, which have drawn regulatory scrutiny and led to the cessation of such practices [9][10]. Group 3: Regulatory Environment - Regulatory bodies have issued warnings against the seasonal spikes in deposit accumulation and have mandated banks to optimize their assessment systems to curb irregular deposit behaviors [7][10]. - The emphasis is on maintaining stable deposit growth without resorting to non-compliant methods such as offering gifts or excessive interest rates [10][11]. - Analysts suggest that banks should focus on sustainable methods to attract deposits, such as efficient payroll services and selling financial products, rather than relying on high-interest rates or promotional gifts [10][11].