Despite the positive factors such as the removal of high-interest deposit products by banks and the correction of the bond market, in the third week of May, the product issuance of wealth management subsidiaries of banks continued to maintain a stable trend and did not show a significant increase.
Flush iFinD data shows that on May 13 ~ May 19, bank wealth management companies issued a total of 616 wealth management products (calculated separately by sales date, the same below), a slight increase of 4.41% from the previous week, but still lower than the weekly average issuance level of 688 in April and 819 in March.
Among the wealth management companies with the highest number of issuances, the wealth management subsidiaries of joint-stock banks occupy more seats. Among them, Minsheng Wealth Management ranked first with 50 issuances, and the number of new products issued by IB Wealth Management, Ping An Wealth Management, CMB Wealth Management, SPDB Wealth Management and Everbright Wealth Management also exceeded 30, all of which entered the top 10 on the list. It is worth mentioning that among the wealth management subsidiaries of state-owned banks, BOCOM Wealth Management has accelerated the pace of issuance, issuing a total of 44 products last week, ranking second.
From the perspective of the nature of product investment, the wealth management market continued the previous trend, and the new products issued last week were still dominated by fixed income products, accounting for 98.21%, but compared with 99.15% in the previous week, it declined, mainly because wealth management subsidiaries increased the issuance of commodities and financial derivatives and hybrid products last week.
Among the new fixed income products issued by wealth management subsidiaries last week, the "Bejia Ruixuan Smart Fixed Income Class (minimum holding for 540 days)" issued by BlackRock CCB Wealth Management is the highest product in the expected annualized return, which is also the only wealth management product issued by the wealth management company last week, with an expected annualized rate of return of 3.0%~6.0%. It is followed by CMB Wealth Management's Zhaorui Anying Preferred (Stable) 14-month Enhanced Fixed Income Category, with an expected annualized yield of 2.65%~5.65%. Both products have a PR3 risk-return rating, which means medium risk.
It is worth mentioning that after the full moon of the release of the new "National Nine Articles", the issuance of rights-bearing products of bank wealth management subsidiaries has shown signs of recovery. Last week, five wealth management subsidiaries, including IB Wealth Management, Hangzhou Bank Wealth Management, CMB Wealth Management, Beijing Bank Wealth Management and ABC Wealth Management, issued a total of 7 hybrid wealth management products, which was a significant increase compared with the number of products issued by only 2 products per week in the previous two weeks. Not only that, Huaxia Wealth Management also issued an equity wealth management product "Tiangong Rikai No. 14" with the SSE 50 Index as the subject matter, which is also the only equity public wealth management product issued by a wealth management subsidiary since May.
Despite this, the proportion of weighted wealth management products in newly issued products is only 1.35%, which is not high. Regarding the current difficulty of bank wealth management to develop equity wealth management products, Cui Shengyue, a researcher at Puyi Standard, said that there are two main points: first, the investment and research capabilities are relatively insufficient, compared with traditional fixed income products, equity investment requires more professional investment research capabilities and rich market experience, and some banks need to improve their investment and research capabilities in the field of equity investment. Second, in terms of investor acceptance, due to the high risk of equity and partial stock hybrid products, the risk appetite of bank wealth management investors is still at a low level, and the acceptance of related products may be relatively low.
Based on this, the analysis generally believes that it is not appropriate to overestimate the amount of bank wealth management funds entering the capital market in the short term.
From the perspective of the performance benchmark of newly issued products, or affected by the correction of the bond market trend, the proportion of RMB products with the highest annualized yield of 3.5% or more is expected to be 31.7%, an increase of 2.27 percentage points from the previous week.
The performance of existing wealth management products also improved last week. According to the statistics of Flush iFinD data, only 2.6% of the existing products have withdrawn, and most of the products are still greater than 1 after the net value declines, so the actual net failure rate has decreased. Last week, the comprehensive net failure rate (net value) of the existing products of wealth management subsidiaries
Data source: Straight Flush iFinD, data export date: 2024.5.20
Specific to the performance of each wealth management subsidiary, the recent drawdown of Suyin Wealth Management products is large, and 7 of the top 20 products in the drawdown range are issued by Suyin Wealth Management. In addition, CNCBI Wealth Management and Bank of Shanghai Wealth Management have also seen a number of recent net value drawdowns.
From the perspective of wealth management companies, the wealth management companies with the highest proportion of broken net are Goldman Sachs ICBC Wealth Management, ICBC Wealth Management and CCB Wealth Management, with net breaking rates of 16.67%, 7.33% and 4.46% respectively during the period. Goldman Sachs' ICBC Wealth Management accounts for the top proportion of its net breaking rate is mainly related to the small number of its stock products, and from the perspective of net breakage, ICBC Wealth Management, IB Wealth Management and CNCBI Wealth Management ranked the top three, with 101, 58 and 44 net breaks last week.
From the perspective of revenue growth, according to the calculation of Liao Zhiming's team of China Merchants Securities, as of May 15, the top five mixed wealth management products were Ningbo Wealth Management, BlackRock CCB, CMB Wealth Management, Huihua Wealth Management and ABC Wealth Management. In particular, the average yield of Ningbo Wealth Management and BlackRock CCB hybrid wealth management products has exceeded 4% since the beginning of the year, and the yield is significantly ahead.
Looking ahead, analysts generally believe that due to the reduction and low deposit interest rate, the scale of wealth management is expected to maintain steady growth, or more than 30 trillion yuan by the end of the year. However, from the perspective of income performance, with the impact of the ban on manual interest supplementation, the superimposed bond coupon is at a historical low, and the yield of wealth management may fall significantly.