Interface News reporter | Han Yuhang
In May, the scale of bank financial management continues the trend of expansion.
According to statistics from Huaxi Securities, the scale of bank financial management increased significantly by 310.8 billion yuan to 29 yuan in a single week from May 13 to 17.Megamillionspayouttoday.73 trillion yuan, of which the survival size of financial management institutions increased by 294.9 billion yuan to 25 yuan compared with the previous month.Megamillionspayouttoday91 trillion yuan, accounting for 87.17% of all financial products in the market. Overall, the scale of financial management has increased by 2.7 trillion yuan since April, accounting for almost 10 per cent of the total stock. As of May 17, bank financial management increased by 486.5 billion yuan in May.
The rebound in scale is not only due to the return of funds to financial management after the end of the quarter, but also the result of the relative performance-to-price ratio of financial products. Industry insiders told interface journalists that since the beginning of this year, regulatory authorities have banned manual interest payments and regulated general deposits, which have formed an effective support for deposit return and financial management.
Since April, "manual interest compensation" has been explicitly prohibited by the central bank, and major stock banks have removed high-interest, medium-and long-term large certificates of deposit products, and the effect of deposit relocation is obvious.
Where is the "rise" in the financial management of banks with such a large scale?Megamillionspayouttoday? Huaxi Securities data show that in terms of sub-investment model, the scale increment is mainly contributed by "fixed income +" products. Specifically, the "fixed income plus" of non-investable stocks achieved the largest increase, with a capacity expansion of 161.7 billion yuan to 7.5 trillion yuan over the previous week.MegamillionspayouttodayFollowed by the "solid income plus" of investable stocks, which increased by 110.4 billion yuan to 8 trillion yuan compared with the previous month; the absolute scale of other product types changed little.
A person from the stock bank told the interface news that the flow of deposit funds to wealth management products led to an increase in the scale of financial management, which, to be exact, mainly focused on fixed income products. In terms of "fixed income plus", "because the stock market has risen well, so the equity return is better, and it has also attracted some funds," the above-mentioned person pointed out.
According to the performance of "fixed income plus" financial products counted by Huaxi Securities Research Institute according to Puyi standard data, as of May 17, the average 7-day annualized returns of non-investable stock "fixed income +" and investable stock "fixed income +" products were 3.5%, compared with 2.6% and 2.8% respectively in March, the performance improved significantly.
In terms of time limit, the increase in the scale of financial management brought about by a series of big actions such as banning manual interest payment also makes short-term products more "hot". Puyi standard research pointed out that the new size of short-term financial products has increased, reflecting the increase in the market's favor for short-term financial products. According to Puyi standard data, the size of new short-term financial products issued in the first quarter of 2024 was 403.383 billion yuan, an increase of 43.537 billion yuan over the fourth quarter of 2023. Among them, the product with a duration of "3-6 months" has the largest new scale, an increase of 53.482 billion yuan compared with the fourth quarter of 2023.
Huatai Securities fixed income analyst Zhang Jiqiang and others pointed out in the research report that financial management for the decline in the availability of "high interest" deposits, non-standard assets, may have to passively increase the proportion of bond allocation, especially short-term bonds. The allocation pressure of financial management will also be transmitted to the base and short-term debt funds, bringing short-term allocation demand.
A number of joint-stock banks and state-owned bank financial managers also told the interface news that in the market, investors are still inclined to short-term financial products, a joint-stock bank financial manager pointed out, according to the needs of investors, investors are also more recommended to buy short-term debt financial products, taking into account both income demand and liquidity.
It is worth mentioning that, according to Huaxi Securities data statistics, since May, non-cash management products in daily financial products have become the main force of expansion. Among them, non-cash management products account for only 1/4 of all daily open-end products, while this small number of products have contributed nearly 78 per cent of the scale increase since May, while the increase in the larger proportion of cash management products is relatively weak. and this may also be due to the impact of the ban on "manual interest".
A number of industry insiders also pointed out that after the prohibition of manual interest payment, investors should appropriately lower their income expectations for fixed products. Although the performance benchmark of newly issued wealth management products has fallen again and again since mid-April.
In the weeks from April 22 to May 19, the benchmark for open-ended wealth management products fell from 3.06% to 3.02%, while the performance benchmark for closed-end wealth management products fell from 3.16% to 3.03%, according to Puyi.
Liao Zhiming, an analyst at China Merchants Securities, pointed out in a recent research report that as the impact of the ban on manual coupons shows that superimposed bond coupons are historically low, the financial yield may be significantly lower.
CICC fixed income also pointed out in the research newspaper that some of the factors that promoted financial returns to be stable and relatively high in the past are disappearing, and financial returns may continue to decline in the future. "at present, bond yields have fallen to a low level, and it is more difficult to obtain capital gains. At the same time, investment bank deposits are also subject to certain restrictions through insurance assets." analysts at Zhongjin fixed income expect that under the constraints of bank liquidity indicators, and the gradual reduction of high-interest assets, ordinary deposit rates and financial quotation rates are expected to be linked downwards eventually.
According to the 2023 annual report of bank wealth management, cash and deposit assets were the most obvious additional assets last year, accounting for 26.7% of asset allocation, an increase of 9.2 percentage points from the end of 2022. According to the Huaxi solid income Research report, as of May 17, the financial management has held nearly 7.61 trillion yuan of deposit assets.