Accelerate the layout! The issuance of such products has reached a new high

China Fund News reporter Zhang Ling

With the new "National Nine Articles", bank wealth management funds are encouraged to enter the capital market and increase the scale of equity investment. Wealth management subsidiaries have also significantly accelerated the layout of wealth management products with rights. According to the data, the number of hybrid wealth management products issued in April alone has hit a new monthly high since the second half of 2023.

A number of industry insiders said that due to multiple factors such as low bond yields, high cost performance of equity assets, and rapid growth in the scale of the wealth management market, the speed of banks' wealth management layout of rights-bearing products has accelerated. Although there are still certain shortcomings in bank wealth management in equity investment, under the promotion of policies, as various companies continue to improve their layout strategies, wealth management companies still have a lot to do in equity investment in the future.

Wealth management sub-management continued to lay out, and the issuance hit a new high in April

Since the beginning of this year, the pace of the layout of wealth management subsidiaries of banks with rights such as hybrid and equity wealth management products has been significantly accelerated. A number of wealth management companies, including CMB Wealth Management, Minsheng Wealth Management, IB Wealth Management and Bank of China Wealth Management, have successfully issued a number of wealth management products with rights.

From the perspective of the issuance of hybrid products, data from China's wealth management network shows that as of April 25, a total of 53 mixed wealth management products were issued by bank wealth management subsidiaries during the year. Among them, 19 products were raised in April, a new monthly high since the second half of 2023.

On the other hand, in the issuance market, many wealth management products with rights are favored by funds. For example, on April 17, CMB Wealth Management established a wealth management product with rights, "Zhaozhi Value Select One-Year Holding Hybrid Wealth Management Plan", raising more than 2 billion yuan, and another R3 risk level wealth management product with rights issued by the company in February this year, "Zhaozhi Rui and Stable (Anying Preferred) Closed No. 6 Mixed Wealth Management Plan", also received a relatively high scale of 1.354 billion yuan in its initial offering.

From the perspective of performance, since April, the income of wealth management products with rights has rebounded. According to data from China Merchants Securities, as of April 15, the year-to-date average yields of hybrid and equity wealth management products of wealth management companies were 0.88% and 1.1%, respectively, up about 0.3 and 1.5 percentage points respectively from the end of March.

For bank wealth management companies to continue to deploy weighted wealth management products during the year, Wisdom Xinhong Wealth Management Research Institute believes that there are three main reasons.

First, bond yields continue to hover at low points, and if new products continue to allocate a large number of bonds, the expected yield will be lower; at the same time, if bond yields turn upward, the net value of existing bonds will face a greater risk of decline.

Second, no matter from the perspective of valuation or policy, the magnitude and probability of the decline of equity assets are small, and the cost performance is relatively high.

Third, the scale of bank wealth management has increased significantly since April. According to data from CITIC Securities, as of April 19, the overall scale of wealth management reached 28.97 trillion yuan, an increase of 2.17 trillion yuan from the end of 2023, of which the new scale of bank wealth management in April was close to 2 trillion yuan.

"In the context of the hot wealth management product market, some institutions may take the opportunity to sell products with a higher risk level. Wisdom Xinhong Financial Research Institute said.

"The investment of bank wealth management products will generally be mainly fixed income, but equity assets will also be allocated. Lou Feipeng, a researcher at the Postal Savings Bank of China, said that the current valuation of the mainland stock market is at a low point, and all walks of life are more optimistic about the subsequent development of the stock market, which to a certain extent has attracted bank wealth management products to invest in equity assets. There are still shortcomings in equity investment, and the future development prospects are promising

In the long run, after the release of the new regulations on asset management, bank wealth management products can enter the capital market, and between 2020 and 2021, wealth management companies have also actively deployed hybrid wealth management products, and the market for rights-related products is hot, but after 2022, the number of issuances has continued to decline due to market shocks and other factors.

According to the data of Puyi Standard, as of April 21, the number of existing wealth management products in the whole market reached 38,232. Among them, fixed income products accounted for 92%, mixed products accounted for only 4.6%, and equity, commodity and financial derivatives products also accounted for a relatively small proportion.

In this regard, Lou Feipeng bluntly said that for bank wealth management, investing in equity assets and developing hybrid wealth management products, on the one hand, it is necessary to improve its own investment and research capabilities, strengthen the research on the trend of large types of assets and asset allocation strategies, and on the other hand, it is also necessary for the company to formulate strategies to deal with the low risk appetite of wealth management customers, that is, to do a good job in investor education. However, these are also the difficulties faced by banks in investing in equity assets. ”

Wisdom Xinhong Financial Research Institute said that on the capital side, the current distribution channel of bank wealth management is commercial banks. In terms of the traditional cognition of customers, the advantage of bank wealth management is fixed income products, which leads to the low risk preference of bank wealth management customers, and the poor performance of the equity market in the past few years since the establishment of bank wealth management has made it relatively difficult to raise equity bank wealth management products.

On the asset management side, the Wisdom Xinhong Wealth Management Research Institute bluntly said that in terms of system and salary mechanism, it is difficult for bank wealth management to set up a professional equity investment team under the condition that the effective time is unknown.

As for how to do a good job in equity investment, the research institute believes that on the capital side, it is necessary to call for the release of bank wealth management products in securities companies and other channels, and constantly improve the source of funds, so that all kinds of asset management institutions have the opportunity to compete on the same stage. "On the asset side, whoever has enough foresight and who can innovate the system and mechanism will be able to have a place when the equity market improves in the future. ”

On the other hand, under the continuous promotion of policies, bank wealth management companies are actively deploying equity investment, and the interviewees generally believe that there are still broad development prospects for wealth management companies in equity investment in the future.

According to a person from a wealth management subsidiary of a large state-owned bank, they set up an equity direct investment team as early as the second half of last year to study equity asset investment strategies. At the same time, it also attaches great importance to cultivating the investment and research team and continuously improving the company's equity investment capacity building. Bank of China Wealth Management said that under the guidance of the new "National Nine Measures", the company will take measures in many aspects to continuously increase the scale of equity investment. First of all, in terms of product layout, the company will further improve the product lines such as equity, hybrid, and fixed income enhancement, and enrich the term structure and theme direction. Secondly, in terms of asset allocation, the company will actively explore investment opportunities in the equity market and form a reasonable ratio with fixed income assets. Finally, in terms of investment strategy, we will actively track the industries, themes and key companies encouraged by the policy, and improve the equity investment plan suitable for financial management funds through the combination of indexes, funds and stocks.

"The new 'National Nine Articles' encourage bank wealth management funds to actively participate in the capital market and increase the scale of equity investment. This will help enrich the investment direction of bank wealth management funds, and also help bank wealth management to better serve the real economy, which has great development potential in the future. Lou Feipeng said.

Dong Ximiao, chief researcher of Zhaolian, believes that under the promotion of the overall positive macro policy, the bank wealth management market is expected to show a development trend of promoting stability and seeking progress in stability throughout 2024. From the perspective of asset allocation results, under the premise of continuing the "28" law (that is, 80% of safety cushion assets and 20% of Bo income assets), it is expected that the proportion of equity assets and public funds will rebound.

Editor: Captain

Review: Xu Wen