Core Viewpoint - The recent strong performance of the equity market has led to a noticeable shift in investor preference from pure fixed-income products to "fixed income + equity" products, resulting in increased marketing efforts by banks for these products [1][4]. Group 1: Market Trends - The equity market's upward trend has caused some investors to redeem pure fixed-income products in favor of higher-risk, equity-inclusive "fixed income +" products [3]. - In July, the average annualized yield for cash management and fixed-income products decreased to 1.50% and 2.73%, respectively, while mixed and equity products saw increases to 3.64% and 9.93% [3]. - The average annualized yield for bank wealth management products dropped to 2.12% in the first half of 2025, down from 2.65% in 2024 and 2.94% in 2023, indicating a challenging environment for traditional fixed-income products [4]. Group 2: Product Characteristics - "Fixed income + equity" products typically allocate over 80% to fixed-income assets while including a small portion of equity assets, offering higher overall returns with moderate risk [2]. - Certain mixed products linked to passive indices, such as the "Zhongyin Wealth Management - Smart Index Tracking Strategy," have reported impressive annualized yields of 12.70% over the past month [3]. Group 3: Opportunities and Challenges - The rise of equity-inclusive wealth management products is driven by declining yields in traditional fixed-income products and a strong equity market performance, creating a demand for enhanced returns [4][5]. - Banks face challenges in promoting these products due to their traditional customer base's low risk tolerance and sensitivity to market fluctuations, necessitating improved research and investment capabilities [5][6]. - Recommendations for banks include enhancing investment research capabilities, optimizing product design to balance risk and return, and tailoring offerings to meet diverse investor needs [5][6].

Core Viewpoint - The recent strong performance of the equity market has led to a noticeable shift in investor preference from pure fixed-income products to "fixed income + equity" products, resulting in increased marketing efforts by banks for these products [1][4]. Group 1: Market Trends - The equity market's upward trend has caused some investors to redeem pure fixed-income products in favor of higher-risk, equity-inclusive "fixed income +" products [3]. - The average annualized yield of cash management and fixed-income products has decreased to 1.50% and 2.73% respectively in July, while mixed and equity products have seen increases to 3.64% and 9.93% [3]. - The average annualized yield of bank wealth management products has dropped from 2.94% in 2023 to 2.12% in the first half of 2025, indicating a downward trend in traditional fixed-income yields [4]. Group 2: Product Development - Banks are increasingly promoting "fixed income + equity" products, which typically allocate over 80% to fixed-income assets while including a small portion of equity assets, offering higher overall returns with moderate risk [2][5]. - Certain mixed wealth management products linked to passive indices have shown impressive annualized yields, such as a product from Bank of China with a yield of 12.70% over the past month [3]. Group 3: Challenges and Opportunities - The rise of equity-inclusive wealth management products presents both opportunities and challenges, as banks must navigate the low-risk appetite of traditional clients and the inherent volatility of equity markets [5][6]. - To enhance their research capabilities, banks are encouraged to incorporate experienced equity or quantitative teams and optimize product design to balance risk and return [5][6].

Core Viewpoint - The performance of asset yields has shown divergence, with fixed income products experiencing a decline while "fixed income +" and mixed products have yielded better returns, highlighting the advantages of diversified allocation strategies in the current market environment [1][2][7]. Group 1: Market Trends - Since late July, the bond market has seen adjustments, leading to a decline in the yields of pure fixed income products, which are primarily based on bonds [2][3]. - The average annualized yield for open-ended fixed income products from July 21 to July 27 was 2.81%, down 0.23 percentage points from the previous period, while the average redemption yield was 2.43%, down 0.21 percentage points [2]. - Factors influencing the bond market include increased expectations for "anti-involution" policies, a strong equity market, and a shift in investor risk appetite, causing funds to flow from the bond market to the equity market [3]. Group 2: Product Performance - Some "fixed income +" products have provided significant returns, with one product yielding over 4% annualized in the past month, utilizing a mix of stable fixed income assets and diversified strategies [4][6]. - The "fixed income +" products incorporate various strategies, including gold, high dividend, and preferred stock strategies, aiming to balance risk and return [4][7]. - The use of multi-asset strategies, such as FOF (Fund of Funds), allows for diversified investment across multiple funds, enhancing risk-return profiles [5][6]. Group 3: Future Outlook - The bond market is expected to remain volatile in the first half of 2025, which may impact the yields of financial products, with "fixed income +" products becoming increasingly valuable in this context [7][8]. - There is a structural contradiction between ample funds and a scarcity of quality assets, suggesting that "fixed income +" products will play a crucial role in balancing returns and volatility [7]. - The industry is encouraged to explore project-based assets and capture structural opportunities in the equity market through various strategies, including quantitative index enhancement and cross-border investments [7][8].

Core Viewpoint - The performance of financial products is showing divergence, with "fixed income +" products gaining advantages in a volatile bond market, while pure fixed income products are experiencing a decline in yields [1][2][5] Asset Performance Divergence - Since late July, the bond market has seen adjustments, leading to a decline in yields for pure fixed income financial products, which primarily consist of bonds. The average annualized yield for open-ended fixed income products was 2.81%, down 0.23 percentage points from the previous month [1][2] Market Dynamics - Financial companies are reducing long-duration bonds to lower volatility, which further exacerbates the decline in yields. The bond market's adjustment is influenced by expectations of "anti-involution" policies and a stronger equity market, prompting a shift of funds from bonds to equities [2][3] Diversified Allocation Strategies - "Fixed income +" products are designed to balance risk and return by incorporating a mix of fixed income and equity assets. Strategies include investments in high-dividend stocks, gold, and various equity indices, aiming to enhance yields through diversified asset allocation [3][4] Future Outlook - The financial market is expected to face structural contradictions between ample funds and a scarcity of quality assets. "Fixed income +" products are anticipated to become important tools for balancing returns and volatility, with a potential increase in the scale of rights-inclusive financial products [5][6]

Core Viewpoint - The bond market is experiencing fluctuations due to various factors, impacting the performance of bank wealth management products, particularly pure fixed-income products, which have seen a short-term decline in yields. However, with the recent recovery in equity and commodity markets, some "fixed income+" products have shown strong performance [1][2]. Group 1: Market Performance - Since late July, the bond market has undergone adjustments, leading to a decline in yields for pure fixed-income wealth management products, which primarily invest in bonds. For instance, from July 21 to July 27, the average annualized yield for open-ended fixed-income products was 2.81%, down 0.23 percentage points from the previous period [2]. - The average redemption yield for open-ended fixed-income products was 2.43%, a decrease of 0.21 percentage points, lagging behind the average performance benchmark by 0.23 percentage points [2]. Group 2: Investment Opportunities - Industry experts believe that the configuration value of "fixed income+" wealth management products will become more prominent in the second half of the year. These products are seen as important tools for balancing returns and volatility due to their moderate risk levels and higher yield elasticity [3]. - There is an expectation for the continued expansion of the scale of rights-inclusive wealth management products, driven by structural contradictions in the market, such as ample funds and a scarcity of quality assets [3]. Group 3: Asset Allocation Strategies - Financial institutions are encouraged to move beyond traditional fixed-income reliance and explore project-based asset values, focusing on stable cash flow assets like infrastructure REITs. They should also capture structural opportunities in the equity market through quantitative index enhancement strategies and other financial instruments [3]. - Future asset allocation may reduce dependence on bond coupons and increase the allocation to interest rate bonds to seize trading opportunities, with public funds being a significant channel for this diversification [3].

Core Insights - Recent bank wealth management products have shown significant yield increases, with many offering annualized returns above 5% and even 6% in some cases [1][3] - The rise in yields is closely linked to the performance of the capital markets, particularly the stock market, which has seen a small bull market recently [1][4] - Investors are advised to carefully consider their risk tolerance and investment strategies before investing in high-yield products, as these often involve higher volatility compared to pure fixed-income products [2][8] Group 1: Performance of Wealth Management Products - Many recent wealth management products have annualized returns exceeding 6%, with specific examples including a mixed product from China Post Wealth Management at 6.73% and another from Everbright Wealth Management at 6.49% [3] - The performance of these products is highly correlated with the stock market, indicating a significant allocation to equities within their underlying assets [3][4] - The Shanghai Composite Index has risen by 9.03% and the Shenzhen Component Index by 11.12% over the past 60 days, contributing to the improved yields of these products [1] Group 2: Market Trends and Investor Behavior - There has been a notable increase in the allocation of wealth management products to equity assets, with mixed products seeing a growth in scale [5][6] - The overall scale of bank wealth management has been increasing, driven by a favorable capital market environment and a low-interest-rate backdrop [6][7] - The risk appetite among wealth management clients remains low, with 96.6% of products falling into the PR1 and PR2 risk categories, indicating a cautious approach to investment [8] Group 3: Future Outlook and Recommendations - Experts suggest that the configuration value of equity-linked "fixed income+" products will become more prominent in the second half of the year, potentially driving growth in wealth management scales [9] - Investors are encouraged to choose products that align with their risk tolerance and investment horizon, considering the inherent volatility of these products [9] - Strategies such as "target win" products, which lock in returns upon reaching specific goals, may be beneficial for investors looking to manage risk while pursuing higher yields [9]