Core Viewpoint - The financial management industry is undergoing a significant transformation towards "net value" as it adapts to regulatory guidance and customer demands, leading to a re-evaluation of risk and return dynamics in investment products [2][3][9]. Group 1: Market Transformation - The financial management market is entering a new phase of "net value" transformation, with a focus on balancing returns and risks as the era of guaranteed returns comes to an end [2][9]. - The transition to true net value has resulted in increased volatility in product net values, with a notable decline in the total scale of financial products from 27.65 trillion yuan at the end of 2022 to 25.34 trillion yuan by mid-2023 [3][5]. Group 2: Product Performance and Risk Management - The average yield of financial products has shown fluctuations, with monthly average yields recorded at 2.09%, 2.94%, and 2.65% for the years 2022, 2023, and 2024 respectively [5]. - A significant portion of financial products has experienced maximum drawdowns, with approximately 76% of products in 2022 exceeding 50 basis points, while in 2023 and 2024, over 70% of products had maximum drawdowns below 20 basis points [5][6]. Group 3: Investor Behavior and Product Supply - There is a notable mismatch between investor risk preferences and the actual risk classification of financial products, with 46.69% of investors showing a risk preference of C3 or above, while only 4.31% of products fall into the R3 category or higher [7][8]. - The industry has seen a trend towards product homogenization, driven by a focus on low-risk offerings, which has limited the diversity and potential returns of financial products [7][8]. Group 4: Future Strategies and Innovations - Financial companies are seeking to diversify their asset allocation strategies and align their performance assessments with client interests to ensure sustainable business development [9][10]. - Companies like Xingyin Wealth Management are adjusting their product offerings and performance benchmarks to better reflect market conditions and investor expectations, while also exploring new avenues for yield enhancement [9][10].