In the first half of the year, the bank wealth management report card: the scale of the market rose to 28.5 trillion yuan, generating 341.3 billion yuan of income for investors

The Banking Wealth Management Registration and Custody Center recently released the "Semi-annual Report on China's Banking Wealth Management Market (2024 First)" (hereinafter referred to as the "Report") to conduct statistical analysis of the banking wealth management market in the first half of 2024. According to the data, as of the end of June 2024, the scale of the bank wealth management market was 28.52 trillion yuan, and in the first half of the year, a total of 15,400 new wealth management products were issued, raising 33.68 trillion yuan, creating 341.3 billion yuan of income for investors, and the average rate of return of wealth management products was 2.80%; The number of investors increased to a new high of 122 million.

The number and scale of products increased year-on-year

The average rate of return of wealth management products is 2.80%

In the first half of this year, due to the continuous decline in the deposit interest rates of commercial banks and the suspension of "manual interest supplementation" by regulators, the scale of the bank wealth management market gradually recovered, and as of the end of June, it had rebounded to 28.52 trillion yuan.

According to the report, in the first half of 2024, a total of 178 banking institutions and 31 wealth management companies across the country issued a total of 15,400 new wealth management products, raising a total of 33.68 trillion yuan. As of the end of June, a total of 239 banking institutions and 31 wealth management companies across the country had existing wealth management products, with a total of 40,000 products, an increase of 0.49% from the beginning of the year and a year-on-year increase of 7.99%; The scale of existence was 28.52 trillion yuan, an increase of 6.43% from the beginning of the year and an increase of 12.55% from the same period last year.

As the most important type of institution in the bank wealth management market, the number and scale of existing products of wealth management companies have increased significantly, and the number of rural financial institutions with existing products has decreased by 19 compared with the beginning of the year. According to the report, as of the end of June this year, wealth management companies had the largest number and amount of existing products, with only 21,600 existing products and a scale of 24.33 trillion yuan, an increase of 8.27% from the beginning of the year and a year-on-year increase of 17.71%, accounting for 85.29% of the whole market. The number of rural financial institutions with surviving products decreased from 127 at the beginning of the year to 108.

In the first half of this year, the overall income of wealth management products was stable, creating a total of 341.3 billion yuan for investors, a year-on-year increase of 3.11%. Among them, banking institutions have created a total of 72.7 billion yuan of income for investors; Wealth management companies have created a total of 268.6 billion yuan of income for investors. In the first half of the year, the average yield of wealth management products was 2.80%.

Fixed income products accounted for nearly 97%

Product risk appetite remains low

In the first half of this year, the proportion of fixed income products reached a new high, and the proportion of hybrid, equity, commodity and financial derivatives products decreased to varying degrees, indicating that the risk appetite of banks' wealth management asset allocation continued to decline. At the same time, in the context of the decline in the yield of cash management products, the proportion of their existing scale has decreased significantly.

According to the report, as of the end of June this year, the scale of fixed income products was 27.63 trillion yuan, accounting for 96.88% of the total scale of wealth management products, an increase of 0.54 percentage points from the beginning of the year and an increase of 1.73 percentage points from the same period last year, and the scale of mixed products was 0.78 trillion yuan, accounting for 2.73%. It decreased by 0.48 percentage points from the beginning of the year and 1.65 percentage points from the same period last year, and the scale of equity products and commodities and financial derivatives products was relatively small, at 0.07 trillion yuan and 0.04 trillion yuan respectively.

From the perspective of the distribution of risk levels of existing products, products with medium and low risk levels and below account for the vast majority of the market, and their proportion has increased compared with the beginning of the year. According to the data, the scale of wealth management products with a risk level of two (medium and low) and below was 26.83 trillion yuan, accounting for 94.07%, an increase of 1.27 percentage points from the beginning of the year, and the scale of wealth management products with a risk level of four (medium and high) and five (high) was 0.24 trillion yuan, accounting for 0.85%.

Since the second quarter of this year, its yield has continued to show a downward trend, and by May, its 7-day annualized yield fell below the 2% mark. Market analysts believe that the decline in the yield of such products has led some investors to switch to other wealth management products, which is one of the main reasons for the decline in their scale. According to the report, as of the end of June 2024, the scale of open-ended wealth management products was 22.78 trillion yuan, accounting for 79.87% of the total scale of wealth management products, an increase of 0.84 percentage points from the beginning of the year and a decrease of 0.08 percentage points from the same period last year, of which the scale of cash management wealth management products was 7.49 trillion yuan, accounting for 32.88% of the total scale of open-ended wealth management products. It decreased by 7.44 percentage points from the beginning of the year and 2.71 percentage points from the same period last year.

The number of investors increased to 122 million

Moderate risk appetite accounts for the highest proportion

While the scale of the bank wealth management market has rebounded, the number of investors has also reached a new high, among which the proportion of prudent investors is still the highest, but the proportion of conservative investors with the lowest risk appetite and the aggressive investors with the highest risk appetite have increased from the beginning of the year.

Individual investors are still the absolute main force in the bank wealth management market, while the proportion of institutional investors has increased slightly. According to the report, as of the end of June, the number of investors holding wealth management products reached 122 million, an increase of 6.65% from the beginning of the year and a year-on-year increase of 17.18%. Among them, the number of individual investors increased by 7,388,800 from the beginning of the year, and the number of institutional investors increased by 188,500 from the beginning of the year. From a structural point of view, the wealth management market is still dominated by individual investors, with 120 million investors, accounting for 98.74%; The number of institutional investors continued to increase slightly, with 1.5345 million, accounting for 1.26%.

In terms of investment risk appetite, moderate risk appetite remains the mainstream trend. Among the individual investors who hold wealth management products, investors with a risk appetite of Level 2 (Stable) account for the largest proportion, at 33.82%. Compared to the beginning of the year, the number of investors with a risk appetite of Level 1 (conservative) and individual investors increased by 0.64 percentage points, while the number of investors with a risk appetite of Level 5 (aggressive) increased by 0.19 percentage points.

20 trillion yuan of funds flowed to the real economy

More than 4.3 trillion yuan to support the development of small, medium and micro enterprises

Bank wealth management not only creates wealth for investors, but also serves as an important support for the real economy. According to the data, as of the end of June, the total investment assets of wealth management products were 30.56 trillion yuan, a year-on-year increase of 10.32%; The balance of asset allocation of wealth management products is invested in bonds, non-standardized creditor's rights assets and equity assets, accounting for 55.56%, 5.82% and 2.78% of the total investment assets respectively. The report pointed out that the bank's wealth management products actively responded to the call of national policies, gave full play to the function of optimal allocation of funds, and realized the docking of funds with the financing needs of the real economy through various channels. As of the end of June, the bank's wealth management products supported about 20 trillion yuan in the real economy by investing in bonds, non-standardized creditor's rights, unlisted equity and other assets.

Wealth management funds continue to support key areas. Among them, more than 270 billion yuan of wealth management funds have been invested in green bonds, more than 100 billion yuan have been invested in special bonds such as the Belt and Road, regional development, poverty alleviation and relief, and more than 4.3 trillion yuan of financial support has been provided for the development of small, medium and micro enterprises.

In order to help achieve the goals of carbon peak and carbon neutrality in the mainland, the wealth management market will issue a total of 77 ESG-themed wealth management products in the first half of 2024, raising a total of more than 36 billion yuan. As of the end of June, the balance of ESG-themed wealth management products reached 188 billion yuan, a year-on-year increase of 18.54%. Huashang Daily Gale News reporter Liu Fang