2025-12-31 16:02Summary of the Conference Call on Wealth Management Industry Outlook for 2026 Industry Overview - The report focuses on the wealth management industry in China, particularly in the context of deposit migration and new asset allocation narratives for 2026 [4][5]. Key Insights and Arguments 1. Growth in Wealth Management: In 2025, the wealth management industry experienced unexpected growth due to deposit migration and the release of floating profits, with a total scale reaching 33.7 trillion yuan, a year-on-year increase of 12.5% [16][4]. 2. Future Opportunities: The industry is expected to benefit from multi-asset layouts and a further decline in household savings rates in 2026, although it will face pressure from valuation adjustments [4][5]. 3. Risk Appetite of Residents: There is a slight upward trend in the risk appetite of Chinese residents, influenced by their asset-liability performance and historical changes in financial assets during Japan's low-interest era [5][25]. 4. Deposit Migration: In 2025, the average decline in retail deposit rates was approximately 30 basis points, with a notable slowdown in fixed-term deposits. Conversely, demand for demand deposits, bank wealth management products, and non-bank deposits increased [5][48]. 5. Excess Savings: From 2020 to 2025, an excess savings of 14.4 trillion yuan was generated, indicating potential for additional funds to flow into wealth management and other investment areas as savings rates decline [6][50]. 6. Valuation Adjustments: The report anticipates that wealth management products will face "true" net value adjustments in 2026, which may increase product volatility and challenge institutions to meet investor demands for stable growth [13][14]. 7. Projected Growth: The wealth management industry is expected to grow by approximately 8% in 2026, reaching a scale of 36 trillion yuan, with potential for further growth if the bond market stabilizes [14][15]. Additional Important Points 1. Product Structure Trends: The report predicts a continued demand for low-volatility, stable fixed-income products, while the growth of rights-based wealth management products is expected to increase [15][4]. 2. Impact on Stock Market: The anticipated increase in equity asset allocation by wealth management institutions could potentially inject nearly 1 trillion yuan into the capital market by 2027 [15][14]. 3. Public Fund Outsourcing Demand: There is a growing demand for bond ETFs and rights-based funds, driven by the need for enhanced returns and external collaboration [15][4]. 4. Consumer Behavior: The report highlights that despite the potential for increased risk asset allocation, the majority of wealth management products will still prioritize stability and safety due to the current risk appetite of residents [15][25]. 5. Regulatory Environment: The regulatory landscape continues to evolve, with institutions required to return floating profits to investors, which has supported product performance amid market volatility [19][22]. This summary encapsulates the key points from the conference call regarding the wealth management industry outlook for 2026, highlighting growth opportunities, challenges, and consumer behavior trends.