freewsopchips2021| In April, the scale increased by more than 2 trillion yuan, and how can bank financial management, whose yields have declined,"recover lost ground"?

Interface News reporter | Han Yuhang

After three months of downsizing,Freewsopchips2021In April, bank financial management not only recovered the "lost land"Freewsopchips2021It also set a new high in the same period in recent years.

According to the statistics of Huaxi Securities Research Institute, by the end of April (April 26), the size of all financial products in the market had reached 29%.Freewsopchips2021.08 trillion yuan.

From a weekly point of view, the scale shrank by 1% at the end of March.Freewsopchips2021After 0.4 trillion yuan, the survival scale increased by 1.61 trillion yuan in the first week of April, and then shrank week by week, to 1790 yuan, 1683 yuan, and 109 billion yuan, respectively. For the whole month, the financial management scale increased by 2.07 trillion yuan as of April 26, which is higher than the monthly scale increase in April 2022 and April 2023. The change in the size of the financial manager is similar, rising to 25.27 trillion yuan by the end of April.

Although the scale of bank wealth management has been rising every week in the past April, the income of bank wealth management products shows a different trend.

According to Puyi standard data statistics, the rate of return of existing fixed-income financial products in the market has declined to varying degrees in the past month. By the end of April 2024, the average annualized rate of return of open-end fixed income financial products (excluding cash management products) was 3.44%, down 0.27 percentage points from the previous month; the average 7-day annualized rate of return of cash management products was 2.08%, down 0.09 percentage points from the previous month. The average annualized rate of return in the past month was 2.12%, down 0.07 percentage points from the previous month; the average annualized rate of return of closed-end fixed-income financial products in the past month was 4.08%, down 0.14 percentage points from the previous month.

A seller researcher told the Interface News that the rebound in financial management at the end of April is related to the May Day holiday, and investors will also invest in wealth management products for fear of missing out on earnings during the holiday. At the same time, the person pointed out that the May Day holiday is different from the Spring Festival, investors' demand for money is relatively small. This is also one of the reasons for the recent increase in the scale of bank wealth management.

Zhou Yiqin, founder of Guanyuan Consulting and a senior financial regulatory policy expert, explained to the interface news two reasons why bank wealth management can still achieve scale growth in the context of declining product earnings. On the one hand, according to observation, the decline in revenue from wealth management products mainly occurred in late April, not in early April, so the current scale data do not reflect the latest changes in earnings.

On the other hand, since the beginning of this year, the regulatory authorities have dealt a strong blow to various deposit markets through a series of measures, such as standardizing general deposits, banning manual interest payments, standardizing notice deposits and agreed deposits, and there is still room for deposit listing interest rates to continue to decline, which has also formed an effective support for deposit return financial management, especially for public customers.

The recent decline in the rate of return of bank financial management is related to the trend of "deposit" of financial funds. Excessive deposit ratio will reduce the income level of the product. On the one hand, fluctuations in the domestic stock and bond markets have intensified investors' cautious mood, and wealth management products have begun to allocate more cash and bank deposit assets in order to meet investors' demand for low risk and stable returns, Liu Fengming, a researcher on Puyi standards, told the interface news reporter. On the other hand, due to the continuous decline of market interest rates and excess funds in the market, there are fewer high-quality assets that banks can invest in financial management, so the investment in deposit assets has been increased.

On the other hand, Puyi standard analysis points out that with the deepening of homogenization of financial products, the demand for diversified allocation of assets by investors will be restrained to a certain extent. In the medium to long term, the trend of deposit is not conducive to investors to repair risk appetite and get rid of the idea of "just exchange". Over-reliance on deposit assets does not help investors to improve their personal investment and financial management ability. Financial management companies need to find a way of asset allocation that can better maintain product income and ensure the competitiveness of products.

At the end of 2023, state-owned banks and joint-stock banks cut deposit interest rates one after another, and small and medium-sized banks began to follow in 2024. Recently, China Merchants Bank has issued a notice that it will no longer issue new three-year and five-year certificates of deposit products. The decision also forced savers to look at deposits with shorter maturities and lower interest rates. After a "combination of interest rate cuts", deposit products with interest rates above 3% that were common in the past have become difficult to find.

Recently, with the combination of a series of policies, such as "manual discount" and limited asset allocation of insurance deposits, high-interest deposit business is even more limited step by step.

For the following changes in the scale of bank financial management, Everbright Securities (rights protection) banking analyst Wang Yifeng believes that there is still room for deposit "disintermediation" and transfer to financial management. Follow-up does not rule out the possibility of further reduction in the interest rate of deposit listing. If interest rates are cut centrally, it may promote demand deposits of enterprises or institutions to enter the money market, thus creating the purchasing power of financial management or other non-silver products.

The above industry insiders also told reporters that the recent fluctuations in the rate of return of financial products is a normal process of market adjustment. After April 30, the bond market has stabilized, and the pressure on the scale of bank financial management will be reduced in the short term.