GuShiio.com ① Many wealth management companies have taken the initiative to lower their investment targets, and the lower limit of the performance comparison benchmark for some surviving products has gradually exceeded 2%;
② Affected by the decline in bond yields and the decline in interbank deposit yields, the lower limit of the performance comparison benchmark for new wealth management products also exceeded 2%.
Cailian News, February 21 (Reporter Zou Juntao)Although there have been previous expectations in the industry, the high probability that the lower limit of the performance comparison benchmark for new wealth management products in 2025 will be below 2%. However, I never expected that the lower limit of the benchmark for performance comparison of existing products would break “2” so quickly.
The latest case is that on the evening of February 21, Guiyang Bank Financial announced that based on market conditions, the performance benchmark of some wealth management products in the “Shuangyin Fortune” series will be adjusted from March 2025.
According to the announcement, after this adjustment, the lower limit of the performance comparison benchmark for the three wealth management products, including “Shuangyin Fortune-Zhou Zhoubao”,”Shuangyin Fortune-Shuangzuan Yueyueyai No. 2″, and “Shuangyin Fortune-Shuangzuan Yueyai”, will reach 1.8%, 1.9% and 1.9% respectively, falling below 2.0% for the first time.
In addition, this evening, a reporter from the Financial Union inquired about China Financial Management Network and found that financial management companies such as BOC Financial Management and ICBC Financial Management have also experienced a large number of cases where the lower limit of the performance comparison benchmark is below 2%.
Industry insiders interviewed believe that the downward revision of the performance benchmark of wealth management products is closely related to the decline in the yield of underlying assets. In recent years, the decline in yields on bonds, deposits, etc. has led to a decline in the income of wealth management products.
Many wealth management companies have taken the initiative to lower the benchmark for performance comparison of existing products
A reporter from the Financial News Agency noted that before Guiyang Bank Financial announced that it would downgrade the performance benchmark of a series of wealth management products, many wealth management companies in the market had lowered the performance benchmark of some wealth management products.
In January this year, wealth management companies such as Minsheng Financial Management, China Bank Financial Management, and BOC Financial Management recently issued intensive announcements to lower the performance benchmark of wealth management products, with some products downgraded by more than 100 basis points.
Among them, CMB Financial announced on January 6 that according to the financial product contract, the performance benchmark of the “Zhaorui Zhuoyuan Series One-Year Fixed Opening No. 9 Enhanced Fixed Income Financial Management Plan” issued by the company will be adjusted to 1.90%-2.60%. The benchmark performance of this product in the previous investment cycle was 2.50%-4.20%, and the actual annualized rate of return was 2.73%.
Specifically to today, Guiyang Bank Financial Management announced that it will downgrade the performance benchmark of seven financial products in the “Shuangyin Fortune” series. Among them, the performance benchmark of the three financial products,”Shuangyin Fortune-Zhouzhou Bao”,”Shuangyin Fortune-Shuangzuanyuan Yueyai No. 2″, and “Shuangyin Fortune-Shuangzuanyuan Yueyai”, will be lowered to 1.8%-2.8%, 1.9%-3.0%, and 1.9%-3.0%. The benchmark performance of the latter two products in the previous investment cycle was both 2.1%-3.0%.
Industry insiders interviewed pointed out that in the current low interest rate environment, wealth management companies can timely reduce the performance benchmark to avoid the problem of excessive deviation between the actual yield of wealth management products and the performance benchmark, and timely adjust investors ‘income expectations.
According to Puyi Standard data, as of the end of 2024, the average yield of existing open-end fixed-income wealth management products in the past year has dropped to 2.98%, and has dropped to 2.86% at the end of January 2025. In January, closed-end products and open-end products were newly launched. The average performance benchmark for products is only 2.71% and 2.37% respectively.
The lower limit of the benchmark for performance comparison of new wealth management products also exceeded 2% on a large scale
Coincidentally, among the newly issued wealth management products, the lower limit of the expected rate of return has also fallen below 2%.
According to China Financial Management Network, the lower limits of the performance comparison benchmark for the two open-end fixed-income wealth management products launched by BOC Financial Management today (February 21),”BOC Financial Management-Stable Wealth 14-Day Holding Period 07″ and “BOC Financial Management-Stable Wealth 7-Day Holding Period 09” are 1.90% and 1.80% respectively.
The lower limit of the performance comparison benchmark for the closed-end fixed-income wealth management product “ICBC Financial Management·Xindeli Fixed Income Closed-end Wealth Management Products” that ICBC Financial Management started to raise yesterday (February 20) is 1.70%. In addition, the lower limit of the performance comparison benchmark for each open-end fixed-income wealth management product raised by Everbright Financial Management and Xingyin Financial Management on the same day also exceeded 2%.
Kong Xiang, a financial analyst at Guosen Securities, pointed out that due to the decline in bond yields and the decline in interbank deposit yields, the performance benchmark of wealth management products will further decline in 2025, and the lower limit of the average performance benchmark of new products will drop by 40-50BP to 2%.
It is worth mentioning that the prices of short-end bonds and interbank certificates of deposit increased at the beginning of the year due to tight market funds. A fixed-income analyst at a securities firm told a reporter from the Financial Union today that there is limited room for the price of certificates of deposit to continue to rise. The long-term interest rate is more based on the market’s judgment based on fundamentals. The current improvement of fundamentals still requires low interest rate protection.
