(Report Produced by CITIC Securities)
1 Regulatory policy: adhering to the principle, innovation and exploration
Adhering to the principles and direction of the "New Asset Management Regulations", the bank's wealth management business continues to explore innovatively. Since April 2018, policies such as the "New Rules for Asset Management", "New Rules for Wealth Management", and "New Rules for Wealth Management Sub-Regulations" have been introduced, ushering in major changes in the asset management industry. In 2019, on the basis of adhering to the principle and direction of the "New Asset Management Rules", policy documents such as non-standard debt recognition rules, structured deposit regulatory requirements, and net capital management measures for wealth management subsidiaries have been successively implemented. In 2020, the transition period of the new asset management regulations will be extended to the end of 2021, the official draft of the rules for the determination of non-standard claims will be introduced, the pilot of "cross-border wealth management" will be opened, and the sales measures of financial sub-products will be solicited for comments, and the relevant policies are steadily advancing. In 2021, the "cross-border wealth management" business was officially launched, the pilot of pension wealth management products was opened, and policies such as sales management, liquidity risk management and cash management product management of wealth management products were introduced.
Looking back at 2021, policy developments related to the bank wealth management market include:
Standardize the sales of wealth management products and promote the steady development of the industry. On May 27, 2021, the Interim Measures for the Administration of the Sale of Property Products by Wealth Management Companies (hereinafter referred to as the Measures) were officially released. On the basis of implementing the "New Regulations on Asset Management," the "New Regulations on Wealth Management," and the "New Regulations on Wealth Management," the "Measures" strengthen the sales institutions and behavioral supervision norms for wealth management products in light of the characteristics of wealth management companies, consolidate the responsibility for the sale and management of wealth management products, strengthen the management of the appropriateness of investors, earnestly protect the legitimate rights and interests of investors, promote fair competition, break rigid payment, and create a good institutional environment for the healthy development of wealth management business.
Unified standards for cash management and smooth transition. In June 2021, the Notice on Matters Related to regulating the management of cash management wealth management products (hereinafter referred to as the "Notice") was officially released. The "Circular" is a concrete measure to implement the "New Regulations on Asset Management" and its supplementary circulars, which is conducive to unifying the regulatory standards for similar asset management products, preventing unfair competition and regulatory arbitrage; is conducive to enhancing the compliance and soundness of the business operation of cash management products, preventing the disorderly growth and accumulation of risks of irregular products, and promoting the rectification of banks' stock wealth management business and the "clean start" of wealth management companies; it is conducive to clarifying long-term institutional arrangements, stabilizing market expectations, eliminating uncertainty, and promoting the smooth operation of relevant businesses and financial markets.
The "Cross-border Wealth Management Connect" business was officially launched, and the amount of business processing was about 486 million. On September 10, 2021, the "Detailed Rules for the Implementation of the Pilot Project of the "Cross-border Wealth Management Connect" Business in the Guangdong-Hong Kong-Macao Greater Bay Area" was officially released, and the pilot innovation features are distinctive: first, the whole process of remote handling of business is basically realized; second, appropriate thresholds are set for mainland banking institutions and investors participating in the pilot; third, cross-border capital macro-prudential management and individual investor limit management; fourth, capital closure management is implemented to ensure "special funds"; fifth, cross-border financial regulatory cooperation between the three places is promoted, business information is shared, and dispute resolution mechanisms are established. Jointly safeguard the rights and interests of consumers. By the end of 2021, more than 60 banks in the Three Greater Bay Areas of Guangdong, Hong Kong and Macao have participated in the "Cross-border Wealth Management Connect" pilot, with 22,000 participating investors, including 14,000 northbound investors and 0.8 million southbound investors. Among them, there are 3802 northbound businesses with an amount of 196 million yuan, and 2053 southbound businesses with an amount of 290 million yuan.
The pilot of pension wealth management products has been carried out in an orderly manner and the source has been cleared. On September 10, 2021, the Notice on Carrying Out pilot projects of pension wealth management products (hereinafter referred to as the "Notice") was officially released. On the one hand, the Notice requires four pilot institutions (ICBC Wealth Management in Wuhan and Chengdu, Jianxin Wealth Management and CMB Wealth Management in Shenzhen, and Everbright Wealth Management in Qingdao) to carry out pilot projects in a sound and orderly manner, do a good job in product design, risk management, sales management, information disclosure and investor protection, and ensure the steady operation of pension wealth management products. On the other hand, adhere to the original source, require all financial companies to standardize the use of the name of pension wealth management products, continue to clean up the financial products that do not match the name of the word "pension", and maintain the good order of the pension financial market.
Strengthen the liquidity management of wealth management products and protect the legitimate rights and interests of investors. On December 17, 2021, the Measures for the Management of Liquidity Risk of Wealth Management Products of Wealth Management Companies (hereinafter referred to as the Measures) were officially released. The "Measures" fully draw on domestic and foreign regulatory practices, and clarify and standardize the focus of liquidity control of wealth management products. Through the establishment of special regulations on the liquidity management of wealth management products, the rule system of wealth management companies has been further improved, which is conducive to supervising wealth management companies to improve the liquidity management mechanism, improve management capabilities, and better promote the transformation of the net worth of wealth management products. At the same time, it is also conducive to maintaining the relative stability of the investment strategy of wealth management products, obtaining long-term investment and value investment income for investors, and better protecting the legitimate rights and interests of investors. (Source: Future Think Tank)
2 Overview of the wealth management market: the scale is 28.6 trillion yuan, and the proportion of net worth is 93%
Scale: 2021Q4 Non-guaranteed wealth management scale 28.6 trillion yuan
It is estimated that the scale of non-guaranteed wealth management in 2021Q4 will be about 28.6 trillion yuan, an increase of 10.4% year-on-year. According to Puyi standard statistics, as of the fourth quarter of 2021, the balance of non-guaranteed wealth management in the country was about 28.56 trillion yuan, up 2.2% quarter-on-quarter and 10.4% year-on-year. In the first quarter of 2021, the scale of non-guaranteed wealth management decreased slightly, increased in the second quarter, increased significantly in the third quarter, increased by 8.3% quarter-on-quarter, and increased slightly by 2.2% in the fourth quarter.
Transformation: The proportion of net worth exceeds 90%.
As of 2021Q4, the scale of net worth products is nearly 27 trillion yuan, accounting for 93.1%. According to Puyi Standard statistics, as of the fourth quarter of 2021, the balance of net worth wealth management products was about 26.6 trillion yuan, accounting for 93.1% of all non-guaranteed wealth management. Since the "New Asset Management Regulations", the proportion of net worth products has continued to increase, with 73%, 79%, 86.6% and 93.1% in the four quarters of 2021, respectively.
Structure: Wealth management companies account for nearly 50%.
Wealth management companies have become the largest management institutions in the bank wealth management market. As of 2021Q3, 29 wealth management companies have been approved for establishment, of which 21 have officially opened, and the product survival scale has reached 13.69 trillion yuan, an increase of 36.75% month-on-month and 2.75 times year-on-year. The market share of wealth management companies has gradually increased, accounting for 48.97% of all non-guaranteed wealth management.
Features: public offering, fixed income, open, medium and low risk
According to the Banking Wealth Management Registration and Custody Center, as of Q2 2021:
The total scale of public wealth management products is 24.63 trillion yuan, accounting for 95%; the total scale of private wealth management products is 1.17 trillion yuan, accounting for 5%.
The total scale of fixed income wealth management products is 22.75 trillion yuan, accounting for 88.2%; the total scale of mixed wealth management products is 2.96 trillion yuan, accounting for 11.5%; the total scale of equity wealth management products is 84.3 billion, accounting for 0.3%; the scale of commodity and financial derivative wealth management products is only 1.1 billion, accounting for a relatively low proportion.
The total scale of closed-end wealth management products is 5.48 trillion yuan, accounting for 21%; the total scale of open-ended wealth management products is 20.32 trillion yuan, accounting for 79%.
The total scale of PR1-level wealth management products is 3.35 trillion yuan, accounting for 13% of the ;P R2-level wealth management products total 17.62 trillion yuan, accounting for 68.3% of the ;P R32 the scale of wealth management products totals 4.71 trillion yuan, accounting for 18.3% ;P R4 level wealth management products total 0.09 trillion yuan, accounting for 0.35% ;P R5 level wealth management products total 0.03 trillion yuan, accounting for 0.12%.
Configuration: Bonds remain the main direction
In the asset allocation of wealth management products, bonds are still the most important allocation direction. As of 2021Q2, the total investment assets of wealth management products are 28.66 trillion yuan, of which: 1) bond investment accounts for 67.3%, including bond investment (56.8%) and interbank certificate of deposit investment (accounting for 10.5%); 2) non-standard asset investment accounted for 13.1%; 3) equity asset investment accounted for 4.1%; 4) public fund investment accounted for 2.6%. (Source: Future Think Tank)
3 Tracking of wealth management products of banking institutions: there are about 30,000 existing products, and the number of products of urban and rural commercial banks ranks first
Number of products: About 30,000 existing products, accounting for nearly 90% of the net value type
2021Q4 The number of wealth management products of banking institutions was 30,666, of which the number of net worth products was 27,320, accounting for about 89.1%. Since the new asset management regulations, the number of net worth products has been rising, the number of expected income products has been declining, at the beginning of 2020, net worth products accounted for about 26.1% of all banking institution wealth management products, about 51.8% at the end of 2020, and about 59.4%, 68%, 78.2% and 89.1% of 2021Q1/Q2/Q3/Q4 respectively.
Type of institution: The number of products of urban and rural commercial banks is the first
In 2021Q4, the number of net worth banking institution wealth management products in existence totaled 27,320, an increase of 17% year-on-year. Considering that state-owned banks and the vast majority of joint-stock banks have set up wealth management companies, the management institutions for the existing net worth products are mainly urban and rural commercial activities. As of 2021Q4, among the existing net worth banking institution wealth management products, the number of products of urban commercial banks totaled 13969, accounting for 51.1%; the number of products of rural commercial banks totaled 9354, accounting for 34.2%; the number of joint-stock bank products totaled 2813, accounting for 10.3%.
In 2021Q4, the number of expected income banking institution wealth management products in existence totaled 3346, down 84.6% year-on-year. With the advancement of the transformation of net worth, the number of expected income-based wealth management products continues to decline. As of 2021Q4, among the expected income-bearing banking institution wealth management products that exist, the number of state-owned bank products is 1554, accounting for 46.4%; the number of joint-stock bank products is 1031, accounting for 30.8%; and the number of urban commercial bank products is 430, accounting for 12.9%.
Open type: 73% of net worth products
2021Q4 The surviving net worth banking institution wealth management products are mainly closed-end, and the proportion of recent stages has been stable at more than 70%. As of 2021Q4, among the existing net-worth banking institution wealth management products, the number of closed-end products totaled 19864, accounting for 72.7%; the number of semi-open products totaled 6290, accounting for 23%; and the number of fully open-ended products was 864, accounting for 3.2%. Since the second half of 2021, the proportion of closed-end products in net worth products has basically stabilized at about 73%.
In 2021Q4, the existing expected income banking institution wealth management products are mainly closed-end, and the proportion of them has fallen to about 73% in recent stages. As of 2021Q4, among the existing expected return banking institution wealth management products, the number of closed-end products totaled 2431, accounting for 72.7%; the number of semi-open products totaled 801, accounting for 23.9%; and the number of fully open-ended products totaled 68, accounting for 2%. The proportion of closed products in expected revenue products continued to decline, from 93.8% at the beginning of 2020 to 89.5% at the end of 2020, and further to 72.7% at the end of 2021.
Investment nature: fixed income accounts for more than 95% of net worth products
The number of fixed income products accounted for 95.2%, and the number of fixed income products accounted for 75.7%. As of 2021Q4:1) Among the surviving net worth banking institution wealth management products, the number of fixed income products accounted for 95.2%, the number of mixed products accounted for 4.2%, and the number of equity products accounted for 0.7%. 2) Among the existing expected income banking institutions, the number of fixed income products accounted for 72.9%, the number of mixed products accounted for 26.4%, and the number of equity products accounted for 0.1%.
During the 2021 period, among the net worth products, the average performance benchmark of fixed income products did not change much, and the average performance benchmark of equity products rose first and then fell. As of 2021Q4, among the surviving net worth banking institution wealth management products, the average performance benchmarks of equity, hybrid and fixed income products were 5.01%, 4.71% and 4.16% respectively.
During 2021, there will be a downward trend in expected yield products. As of 2021Q4, the average performance benchmarks of equity, hybrid and fixed income products in the surviving expected income banking institutional wealth management products were 3.77%, 3.41% and 3.72%, respectively.
Investment period: Nearly 70% of net worth products with a maturity of more than 6 months
Net worth products have a longer average investment horizon than expected return products. As of 2021Q4:1) Among the net worth banking institution wealth management products that exist, the investment period of 6 to 12 months accounts for the highest proportion, reaching 40.5%,; the investment period of more than 1 year accounts for 28.2%. 2) Among the surviving expected income banking institution wealth management products, the investment period of 3 to 6 months accounted for the highest proportion, reaching 38.3%; 6 to 12 months accounted for 33.4%; more than 1 year accounted for 7.9%.
During 2021, the average performance benchmark of medium-term (1-12 months) products was relatively stable, and the performance benchmark of products with a term of less than 1 month and more than 1 year fluctuated greatly. As of 2021Q4:1) Among the existing net worth banking institutions, the longer the investment period, the higher the average performance benchmark; the average performance benchmark of products with an investment period of more than 1 year is about 4.58%. 2) In the existing expected return banking institution wealth management products, the longer the investment period, the higher the average performance benchmark; the average performance benchmark of products with an investment period of more than 1 year is about 4.47%. (Source: Future Think Tank)
4 Wealth management company wealth management product tracking: 29 were approved, and the number of products was nearly 13,000
Institutional Updates: A total of 29 have been approved
By the end of 2021, 29 institutions had received administrative approvals to establish wealth management companies1, of which 23 had been established. Since 2021, a total of 5 wealth management companies have been approved, namely Schroders BOCOM Wealth Management, Bohai Bank Wealth Management, Goldman Sachs ICBC Wealth Management, Hengfeng Wealth Management, and Shanghai Bank Wealth Management. Among the total 29 approved institutions, there are 6 state-owned bank wealth management companies, 11 joint-stock bank wealth management companies, 7 urban commercial bank wealth management companies, 1 rural commercial bank wealth management company, and 4 Sino-foreign joint venture wealth management companies.
Number of products: Nearly 13,000 products exist in 21 wealth management companies
As of Q4 2021, the total number of existing products of 21 wealth management companies was 12,997. Among them, ICBC has the largest number of wealth management products, reaching 1566, accounting for 14.7%; BOC Wealth Management is second, with a total of 1503 products, accounting for 11.6%; followed by CMB Wealth Management, Jianxin Wealth Management and CNCBI Wealth Management, with 1428, 1057 and 1032 products, accounting for 11%, 8.1% and 7.9% respectively.
Type of institution: The number of products of state-owned bank wealth management companies ranks first
In 2021Q4, the number of existing wealth management company products totaled 12,997, an increase of about 2.3 times year-on-year. As of 2021Q4, among the existing wealth management company products, there are 5429 products of state-owned bank wealth management companies, accounting for 41.8%; a total of 4346 products of joint-stock bank wealth management companies, accounting for 33.4%; a total of 2874 wealth management company products of urban commercial banks, accounting for 22.1%; a total of 242 products of rural commercial banks, accounting for 1.9%; and a total of 106 products of joint venture wealth management companies, accounting for 0.8%.
Open type: The proportion of open products continues to rise
Wealth management company products are mainly closed, but the proportion of open products continues to rise. As of 2021Q4, among the existing wealth management company products, the number of closed-end products is 7483, accounting for 57.6%; the number of semi-open products is 5209, accounting for 40.1%; and the number of fully open products is 302, accounting for 2.3%. The share of semi-open/fully open products continues to rise, from 24.7% at the beginning of 2020 to 42.4% at the end of 2021.
Investment nature: Fixed income accounts for more than 80%.
Wealth management company products are mainly fixed income, and the proportion continues to rise. As of 2021Q4, among the existing wealth management company products, there are 11137 fixed income products, accounting for 85.7%; a total of 1673 mixed products, accounting for 12.9%; and a total of 180 equity products, accounting for 1.4%. The proportion of fixed income products continued to rise, from 74.8% at the beginning of 2020 to 85.7% at the end of 2021. Compared with the net worth wealth management products of banking institutions, the mixed and beneficial products of wealth management sub-products account for a relatively high proportion, accounting for a total of about 14.3%, while the mixed and equity categories of banking institutions' net worth products account for about 4.8%.
The average performance of fixed income and hybrid products of wealth management companies was basically stable, and the average benchmark of equity products in the second half of the year was obviously declining. In the first half of 2021, the average performance benchmark of wealth management company products was basically stable, and the average performance benchmark of equity wealth management products declined significantly from August. As of 2021Q4, the average performance benchmarks of fixed income, hybrid and equity wealth management company products were 3.96%, 4.44% and 5.2%, respectively.
Investment period: about 56% of products with a maturity of more than 1 year
The investment period of wealth management company products is mainly more than 1 year, accounting for about 54%.%. As of 2021Q4: 6.7% of the investment period is less than 1 month; 5.2% of 1 to 3 months; 10.2% of 3 to 6 months; 23.9% of 6 to 12 months; and 54.1% of more than 1 year. Compared with the net worth wealth management products of banking institutions, the average investment period of wealth management sub-products is longer. The number of investment terms of more than 1 year in wealth management sub-products accounts for about 54%, while the number of investment periods of more than 1 year in the net worth products of banking institutions accounts for about 28%.
During 2021, the average performance benchmark of wealth management company products is relatively stable, and the average performance benchmark of short-term wealth management products fluctuates greatly. As of 2021Q4, the average performance benchmarks for products with an investment period of less than 1 month, 1 to 3 months, 3 to 6 months, 6 to 12 months, and more than 1 year are 3.3%, 3.35%, 3.66%, 4.1%, and 4.57%, respectively.
5 One of the hot issues of concern: the first batch of pension wealth management products are available, which are both long-term, stable and inclusive
Pilot pension wealth management products: orderly development, the original source
Carry out pilot pension wealth management products, and steadily promote the reform of pension finance. In accordance with the important deployment of the Party Central Committee and the State Council on standardizing the development of the third pillar of pension insurance, on September 10, 2021, the China Banking and Insurance Regulatory Commission issued the "Notice on Carrying out pilot projects for pension financial products", which will be implemented from September 15, 2021. The pilot work of pension wealth management products is conducive to enriching the supply of the third pillar of pension financial products, cultivating the concept of "long-term investment and long-term returns, value investment to create value, prudent investment and reasonable returns" for investors, and meeting the diversified pension needs of the people.
"Four institutions in four places" carried out pilot projects of pension wealth management products. Combined with the national pension or financial reform pilot area, the "four institutions in four places" were selected for the pilot, that is, ICBC Wealth Management in Wuhan and Chengdu, Jianxin Wealth Management and CMB Wealth Management in Shenzhen, and Everbright Wealth Management in Qingdao to carry out the pilot of pension wealth management products. The pilot period is tentatively set for one year. During the pilot phase, the total scale of funds raised by a single pilot institution's elderly wealth management products is limited to 10 billion yuan.
Carry out in an orderly manner and clear the source. On the one hand, the "Notice on Carrying Out Pilot Projects of Pension Wealth Management Products" requires the four pilot institutions to carry out pilots in a sound and orderly manner, do a good job in product design, risk management, sales management, information disclosure and investor protection, and ensure the steady operation of pension wealth management products. On the other hand, adhere to the original source, require all financial companies to standardize the use of pension wealth management products, continue to clean up the untrue "pension" word wealth management products, and maintain the good order of the pension financial market.
The characteristics of the first batch of pension wealth management products: long-term, robustness and inclusiveness
Four pilot institutions, ICBC Wealth Management, Jianxin Wealth Management, CMB Wealth Management and Everbright Wealth Management, have issued the first batch of pension wealth management products. The four pilot institutions have adopted "online + offline" multi-channel sales, and the first batch of pension wealth management products have the characteristics of long-term, robustness and inclusiveness.
Long-term: Pension wealth management products are designed to guide investors to rationally plan pension financial investment and establish an investment concept of long-term investment and reasonable return. The first products have a 5-year closure period.
Robustness: The design of pension wealth management products is oriented to the absolute return strategy. First, the first batch of products are fixed income and mixed products, the risk level is PR2~PR3, and the upper limit of equity asset investment is 20%~40%. Second, in addition to the risk reserve, a return smoothing fund is also designed to extract part of the excess return for replenishment when the performance is lower than the benchmark, so as to achieve the role of "peak shaving and valley filling" and reducing the fluctuation of net value.
Inclusiveness: Pension wealth management products have the characteristics of low minimum purchase threshold, low rate and flexible arrangement. First, the first batch of products are purchased from 1 yuan. Second, the first batch of products do not charge sales fees and performance remuneration, only lower management fees and custody fees. Third, the first batch of products have dividend settings, and dividends are paid regularly after a period of establishment. Fourth, the liquidity arrangement of the first batch of products is relatively flexible, and can be redeemed in advance under the conditions of major diseases and housing demand, and no redemption fee is charged.
Income Smoothing Fund is an innovative design of four pension wealth management products. When the return on a product investment exceeds the performance benchmark, the excess is withdrawn as a return smoothing fund. When the subsequent investment return is low, the flat income fund will be replenished to the product asset. The income smoothing fund is managed independently of wealth management products and can play a better role in stabilizing net value fluctuations. There are differences in the frequency and proportion of provisions between wealth management products.
Wealth management companies are expected to play a more important role in the field of pension finance
At present, the pension products in the mainland pension financial market mainly include three categories: public fund pension products, insurance institutions pension products, banking institutions and wealth management companies pension products. Among them, the pension products of public funds mainly include target date funds and target risk funds; the pension products of insurance institutions mainly include pension security management products and personal tax deferred commercial pension insurance products; the pension products of banking institutions and wealth management companies are mainly pension savings products and pension wealth management products.
As the most promising part of the multi-level pension system, the third pillar of the old-age care requires the coordination and cooperation of policies, asset management institutions and personal concepts. The government completes the design of top-level systems such as tax incentives and individual pension accounts, asset management institutions provide pension financial products, and individuals choose appropriate ways to invest on the basis of correctly understanding their own pension needs and necessities. The development of the third pillar represented by pension-type financial products can effectively alleviate the pressure of the mainland's current pension system and meet the diversified needs of the elderly.
It is expected that public funds, insurance institutions, banking institutions and wealth management companies will go out of the way of characteristic development in the field of pension finance. The advantage of public funds lies in investment research and asset allocation capabilities, as of the end of 2021, the total scale of public pension target funds is 116.29 billion, of which the target date fund is 17.16 billion yuan and the target risk fund is 99.13 billion. Insurance institutions' pension financial products have comprehensive advantages in investment, life insurance, dividends, tax avoidance and other aspects, group pension insurance management business can adapt to the personalized needs of institutional customers such as salary deferral, employee shareholding, customized programs, etc. Individual tax deferred commercial pension insurance has multiple attributes such as tax shield, investment and insurance.
Wealth management companies are expected to play a more important role in the field of pension finance. On the one hand, as a country with a high savings rate, the concept of "saving for the aged" is deeply rooted, and the pension products issued by wealth management companies are more easily accepted by investors. On the other hand, wealth management companies have both public and private fund business opportunities, and on the basis of making use of the traditional advantages of fixed income products and external cooperation in equity products, they will also make use of the comprehensive advantages of bank shareholders' channels and brands, and are expected to play an important role in the field of pension finance.
6 Hot issues of concern no. 2: "Fixed Income +" wealth management products are rich in superimposed assets and stable performance
The demand for "fixed income +" product configuration is growing. First, the "New Asset Management Rules" prohibit the fund pool model of rolling issuance, and the investment in non-standard assets is also restricted, and traditional stable wealth management products are facing downward pressure on income. Second, risk-free returns are in a downward environment, and the returns of traditional fixed income assets are also decreasing. Third, the stock market is in a high-volatility environment, and investors' demand for the allocation of robust products has increased.
The scale of public offerings of "fixed income +" products has continued to rise in recent years. Under the coarse caliber, with the partial debt mixture, primary debt base and secondary debt base combined as "fixed income +" funds, the scale of public "fixed income +" funds increased from 527.9 billion at the end of 2019 to 2163.5 billion at the end of 2021, achieving a scale growth of about 3.1 times in 2 years.
Wealth management companies continue to increase the "fixed income +" product layout. By the end of 2021, the number of "fixed income +" wealth management products in existence in wealth management companies totaled 7601, an increase of nearly 4 times year-on-year. Among them, there are a total of 2942 "fixed income +" wealth management products in the existence of state-owned bank wealth management companies, accounting for about 38.7%; a total of 2749 "fixed income +" wealth management products existing in joint-stock bank wealth management companies, accounting for about 36.2%; and a total of 1618 "fixed income +" wealth management products existing in urban commercial bank wealth management companies, accounting for about 21.3%.
Compared with public funds, the asset classes that can be stacked by the "fixed income +" of wealth management companies are more abundant. By the end of 2021, a total of 6,365 of the total 7,601 "fixed income+" wealth management products were superimposed on multiple types of assets at the same time. Among the products that only superimpose a single asset class, the number of products with "+ non-standard", "+ derivative financial instruments" and "+ funds" is the largest, accounting for 37.9%, 21.2% and 20.3% respectively.
The performance of the "fixed income +" product of wealth management companies has been stable. Wealth management company "fixed income +" products reflect a better absolute income characteristics, although the 19 years, 20 years, 21 years of stock market performance is quite different, taking the CSI 300 index as an example, the returns in the past 3 years were 36.1%, 27.2%, -5.2%, but the performance of wealth management companies ' "fixed income +" products is relatively stable, from the median level, the annualized returns of the past 1 year, 2 years, 3 years were 4.41%, 4.37%, 4.46%.
Wealth management companies are expected to play a greater role in the "fixed income plus" field. First, wealth management companies have certain inherent advantages in investing in fixed income assets. Second, the "fixed income +" products of wealth management companies can be stacked with a variety of assets and diversified approaches. Third, despite the lack of reserves in equity assets, wealth management companies have gradually explored innovative product forms such as fixed income superimposed quantitative allocation index and absolute return targets through public FOFs.
7 Conclusions and Outlook: The End of the Year, Innovation and Exploration
The regulatory rules have been gradually improved, and innovative businesses have been piloted. 2021 is the last year of the transition period of the "New Asset Management Rules", adhering to the principles and direction of the "New Asset Management Rules", policies such as sales management of wealth management products, liquidity risk management and management of cash management products have been introduced. In addition, innovative businesses such as "cross-border wealth management" and pension wealth management products have been piloted, and wealth management business has played an increasingly important role in promoting the facilitation of cross-border investment by individual residents in the Guangdong-Hong Kong-Macao Greater Bay Area, promoting the interconnection and interconnection of the financial market in the Guangdong-Hong Kong-Macao Greater Bay Area, enriching the supply of the third pillar pension financial products, and meeting the diversified pension needs of the people.
The scale of wealth management products has grown steadily, and the transformation of net worth has achieved remarkable results. Since the "New Asset Management Regulations", the scale of non-guaranteed wealth management has grown steadily, from 22 trillion yuan at the end of 2818 to 28.6 trillion yuan at the end of 21, with an annualized compound growth rate of about 9%. The degree of net value transformation has been continuously improved, and the proportion of net worth products has increased from 27.3% at the end of 2018 to 93.1% at the end of 21.
Wealth management companies have developed steadily, and product innovation is unique. At the end of 2018, the first wealth management company was approved, and in May 2019, the first wealth management company was established, and the wealth management company has developed steadily and has become the largest management institution in the wealth management market. By the end of 2021, 29 wealth management subsidiaries had been approved, and the number of existing products was nearly 13,000. While laying out a complete product system covering fixed income, equity, commodities and derivatives, each institution explores and plans differentiated development based on its own advantages and endowments, and explores innovative products such as ESG theme, pension theme, FOF/MOM, and linked configuration index.
Wealth management business will enter a new stage of high-quality development, with opportunities and challenges coexisting. With the continuous optimization of the policy environment and the continuous growth of residents' wealth, the wealth management business has ushered in major development opportunities. Wealth management companies have outstanding comprehensive advantages, both public and private fund business opportunities, fixed income investment has traditional advantages, equity investment is constantly exploring, while leveraging shareholders' channels and brands to give full play to comprehensive advantages, wealth management business will enter a new stage of high-quality development. Of course, in the new stage, the wealth management business is also facing pressure and challenges in terms of new product acceptance, investment capabilities, risk management capabilities, and system construction.
In the closing year, innovation and exploration. At the end of 2021, the transition period of the "New Asset Management Regulations" has officially ended, and the unified regulatory framework for the asset management industry has been basically established, and all kinds of asset management institutions, including bank wealth management, public funds, insurance asset management, trust, securities asset management, private equity funds, etc., will give full play to their advantages, carry out competitive cooperation, and jointly serve the pension, institutional funds and resident wealth management markets under similar constraints. Looking forward, it is expected that each wealth management company will combine its own resource endowments to seek differentiated development; continuously strengthen asset management capacity building, innovate product design forms, enrich the cooperation model of the same industry; fulfill social responsibilities and help the development of pension finance and green finance.
(This article is for informational purposes only and does not represent any of our investment advice.) For usage information, see the original report. ）
Featured report source: [Future Think Tank]. Future Think Tank - Official website