Latest! The scale of many wealth management companies has increased significantly

Source: Brokerage China

A number of wealth management companies have disclosed the latest scale of existence, which has increased significantly from the beginning of the year.

A few days ago, SPDB Wealth Management, Ping An Wealth Management, Qingyin Wealth Management and other companies disclosed their wealth management business reports for the first half of 2024, and the scale and performance of Nanyin Wealth Management were also disclosed in detail in the semi-annual report of the parent bank. Compared with the scale data at the end of last year, the scale of the four wealth management companies has increased to varying degrees, among which the scale of SPDB Wealth Management and Nanyin Wealth Management increased by more than 15% in the first half of the year.

In the first half of this year, the bank wealth management market ushered in a continuous recovery in the scale of existence, boosted by the phenomenon of "debt bull" market and "deposit moving". A few days ago, the latest data disclosed by the banking wealth management registration and custody center showed that as of the end of June this year, the scale of the bank wealth management market reached 28.52 trillion yuan, an increase of 1.72 trillion yuan from the beginning of the year, an increase of 6.43%, and a year-on-year increase of 12.55%.

The scale of many institutions increased by more than 15% in the first half of the year

On July 31, with the disclosure of the first 2024 semi-annual report of an A-share listed bank by Bank of Nanjing, the latest scale and first-half results of the bank's Nanyin Wealth Management were also announced.

According to the data, as of the end of June, the scale of Nanyin's wealth management products exceeded 430 billion yuan, an increase of more than 15% over the end of the previous year. In terms of performance, in the first half of this year, Nanyin Wealth Management achieved revenue of 559 million yuan, a year-on-year increase of 11.13%, and a net profit of 322 million yuan, a year-on-year increase of 14.9%.

A few days ago, the 2024 semi-annual wealth management business report disclosed by SPDB Wealth Management showed that as of the end of June this year, the scale of SPDB Wealth Management reached 1,137.92 billion yuan, an increase of 16.36% from the end of last year. It is worth mentioning that the scale of SPDB wealth management fixed income products at the end of June was 1,136.55 billion yuan, an increase of about 186.5 billion yuan in the first half of the year, an increase of 16.41%, and fixed income products accounted for 99.88% of its existing scale.

Another joint-stock wealth management company, Ping An Wealth Management, also disclosed its wealth management business report for the first half of the year. According to the data, as of the end of June, the scale of Ping An Wealth Management was 1,040.25 billion yuan, an increase of about 3.19% from the end of last year, and the scale of its fixed income products was 1,032.77 billion yuan, and the proportion of fixed income products in the scale increased by 0.33 percentage points from the end of last year to 99.28%.

Qingyin Wealth Management disclosed that as of the end of June, the company's product scale was 208.52 billion yuan, an increase of only about 400 million yuan from the end of last year.

On the whole, the "Semi-annual Report on China's Banking Wealth Management Market (2024)" (hereinafter referred to as the "Wealth Management Semi-annual Report") recently disclosed by the Banking Wealth Management Registration and Custody Center shows that wealth management companies, as the "main force" in the scale of issuance and existing products in the bank wealth management market, maintained the forefront of various institutional types in terms of increment and growth in the first half of this year. Among them, 31 wealth management companies had only 21,600 products in existence at the end of June, with an existing 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 "debt bull" market has pushed up the scale of fixed income products

In fact, in the first half of this year, thanks to the continuous bullish bond market, the scale of bank wealth management fixed income products grew rapidly, which became one of the important factors pushing up the scale of the bank wealth management market.

According to the "Wealth Management Semi-annual Report", as of the end of June 2024, the scale of fixed income products was 27.63 trillion yuan, an increase of 1.81 trillion yuan, or 7%, from the beginning of the year. As of the end of June, fixed income products accounted for 96.88% of all 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.

In addition, the "Wealth Management Semi-annual Report" shows that the scale of hybrid and equity products is still shrinking. Among them, the scale of mixed products at the end of June was about 780 billion yuan, a decrease of about 80 billion yuan from the beginning of the year; The scale of equity only existed about 70 billion yuan, a decrease of 10 billion yuan from the beginning of the year. As a wealth management product with equity assets such as stocks, the scale of hybrid and equity products accounted for a further decline in the total market size in the first half of the year, with the former falling to 2.73% and the latter compressing to only 0.14%.

However, from the perspective of specific products, due to the large differences in the asset allocation of investment managers, the actual redemption yield of various bank wealth management companies is also very different.

Recently, a number of wealth management companies have disclosed the second-quarter investment reports of fixed income, hybrid and equity products, and the yield of some wealth management products is relatively considerable in the context of the continuous decline in risk-free interest rates such as treasury bond yields and bank deposit interest rates.

As of the end of June, the average annualized rate of return of the market's open-ended fixed-income wealth management products in the past six months was 3.43%, up 0.58 percentage points month-on-month, and the average annualized rate of return of open-ended fixed-income products of wealth management companies in the past six months was 3.32%, up 0.72 percentage points month-on-month.

Taking the second quarterly report of a wealth management product of Everbright Wealth Management as an example, Tang Jingying, the investment manager of the product, said when reviewing the operation of the product in the second quarter: "Since the second quarter, the fundamentals have continued to be weakly repaired, and the supply of interest rate bonds has accelerated, but the monetary policy has maintained a relatively loose tone, and the overall capital side has remained relatively stable, and the bond market has performed well in this context. ”

The above-mentioned investment manager recalled that in June, the phenomenon of "asset shortage" was intensified by the entry of incremental funds into the market, and the superimposed social finance and economic data showed that the foundation of weak fundamentals was still there, although the central bank reminded to pay attention to the risk of long-term bonds, but the downward trend of yields continued unabated.

In terms of equity wealth management products, it is worth mentioning that although most equity products performed poorly, there were still some equity products with low-volatility and stable dividend strategies that stood out in the first half of the year.

For example, Everbright Wealth Management's Sunshine Red 300 Dividend Enhanced Wealth Management product achieved an annualized return of 23% in the first half of the year. CMB Wealth Management's Zhaozhuo Value Select Equity Wealth Management Plan achieved an annualized return of 46% in the first half of the year and a good performance of 28.72% in the past three months. The second quarterly report shows that the two wealth management products focus on the layout of low-volatility and high-dividend assets, including blue-chip stocks such as China Shenhua and Gree Electric Appliances, as well as stocks of leading companies such as China Mobile, China Resources Gas and Kweichow Moutai, as well as stable dividend assets.

The scale of wealth management is expected to grow further

Since the beginning of this year, the bond market has continued to perform hotly, and bank wealth management has recorded a large increase. China Securities expects that with the rebound of residents' investment risk appetite, the further decline of deposit interest rates, and the central bank's ban on "manual interest supplementation" and other factors, bank wealth management is expected to show a "quarter-by-quarter recovery" trend in the second half of the year, reaching 34 trillion yuan.

CICC believes that the scale of wealth management will continue to rebound in the short term under the condition of lower deposit interest rates and relatively high returns on bond market performance, and the demand for credit bonds will also be supported. However, in the medium and long term, the cooperation between wealth management and trust will face rectification, as well as the requirements for the reduction of the scale of wealth management of existing banks, which will have a certain negative impact on the growth of wealth management.

The fixed income team of Huatai Securities believes that looking backwards, with the decline in interest rates, the financial investment experience may be reduced, and the low-volatility mode of financial management has weakened to a certain extent, and it is worth observing whether the acceptance of investors and the scale of financial management will continue to grow.

From an investment perspective, looking ahead, some investment managers are still optimistic about the bond market, but some investors warn of potential risks.

For example, Tang Jingying, the above-mentioned investment manager of Everbright Financial Management, said in the second quarterly report of wealth management that looking forward to the third quarter, the fundamentals are expected to maintain a low-slope recovery trend, external demand is expected to repair before domestic demand, the supply of local bonds is accelerated, the loan interest discount for equipment renewal, and the real estate policy continues to increase or bring some support to the fundamentals. On the current macro basis of weak fundamentals and the underallocation of institutional funds, the phenomenon of "asset shortage" in the bond market will continue.

"At the same time, the central bank has a strong demand for stabilizing interest rate spreads, so it will also pay more attention to the expected guidance of long-term interest rates, and the volatility of the bond market may intensify in the short term, and long-term interest rates are still facing certain adjustment pressure, and it is difficult to break through the previous low in the short term," the report said. ”

Wang Dengfeng, deputy general manager and chief fixed income investment officer of BlackRock CCB Wealth Management, recently predicted that the overall logic of the bond market in the second half of the year is: the long-term is basically good, and the short-term is basically optimistic. In the first half of the year, the issuance of bond funds picked up, forming a high demand for bond allocation, and the allocation demand for insurance and wealth management continued to be strong. In the future, the trend of bond bulls will not change, but we need to pay attention to some correction risk points. For example, pay attention to the central bank's policy guidance, the improvement of economic fundamental data, and the changes in the relationship between supply and demand of bonds.

Editor-in-charge: Ye Shuyun

Proofreading: Wang Wei

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