Bank financial management is an important channel for the people to manage their "money bags". What new changes will be seen in the bank wealth management market in 2024? What impact will it have on your and my investment management? The Banking Industry Financial Management Registration and Custody Center recently released the "China Banking Industry Financial Management Market Annual Report (2024)" to let us know.

Change 1: Steady and rising, and the scale of expiration has risen to nearly 30 trillion yuan

The report shows that as of the end of 2024, there were 218 banking institutions and 31 wealth management companies nationwide with 40,300 continuous products, an increase of 1.23% from the beginning of the year; the scale of expiration has 29.95 trillion yuan, an increase of 11.75% from the beginning of the year.

It can be seen from the data that after the market pressure and decline in scale in the past few years, the attractiveness of the bank wealth management market is gradually recovering, becoming an important choice for residents' asset allocation.

The growth in the number of investors also intuitively reflects this. Data shows that as of the end of 2024, the number of investors holding financial products reached 125 million, an increase of 9.88% from the beginning of the year. Among them, the number of individual investors increased by 10.97 million from the beginning of the year, and the number of institutional investors increased by 290,000 from the beginning of the year.

Experts said that in the context of downward deposit interest rates, bank wealth management products have gained favor from the people for their lower risks and relatively stable returns. Measures such as reducing product fees and extending transaction times introduced by wealth management companies have also increased the attractiveness of wealth management products.

The report shows that in 2024, financial products generated a total of 709.9 billion yuan in revenue for investors, an increase of 1.69% over the same period last year. In 2024, the average yield of wealth management products is 2.65%.

Change 2: Structural optimization The proportion of net value products has increased

Since the implementation of the new asset management regulations in 2018, breaking the rigid redemption and realizing net value transformation has become the most important development trend of bank wealth management business.

The report shows that as of the end of 2024, the scale of net value wealth management products had an expiration of 29.50 trillion yuan, accounting for 98.50%, an increase of 1.57 percentage points from the beginning of the year.

From the product term, in 2024, the weighted average term of newly issued closed-end financial products is between 284 and 392 days, providing the market with a long-term and stable source of funds. As of the end of 2024, the proportion of closed-end products with a total survival scale of more than one year accounted for 67.15% of all closed-end products, an increase of 0.13 percentage points from the beginning of the year.

Experts said that closed products of more than one year will help wealth management companies better conduct long-term investments, provide long-term financial support for the real economy, and also help create long-term returns for investors.

Change 3: More conservative, with medium and low-risk products accounting for more than 90%

It can be seen from the report that in 2024, the overall investment preference of the financial management market will become more conservative, and the proportion of medium and low-risk products will increase.

From the risk level, as of the end of 2024, the survival scale of wealth management products with risk levels of level 2 (medium and low) and below was 28.66 trillion yuan, accounting for 95.69% of the total wealth management products, an increase of 2.89 percentage points from the beginning of the year; the survival scale of wealth management products with risk levels of level 4 (medium and high) and above was 0.08 trillion yuan, accounting for 0.27% of the total wealth management products.

As of the end of 2024, the largest number of individual investors holding financial products were investors with a second-tier (stable type), accounting for 33.83%.

This can also be seen from the structure of the existing product: fixed income products are still the most popular.

The report shows that as of the end of 2024, the scale of fixed income products was 29.15 trillion yuan, accounting for 97.33% of the total wealth management products, an increase of 0.99 percentage points from the beginning of the year; the scale of mixed products was 0.73 trillion yuan, accounting for 2.44%, a decrease of 0.77 percentage points from the beginning of the year; the scale of equity products, commodity and financial derivative products was relatively small, at 0.06 trillion yuan and 0.01 trillion yuan respectively.

Change 4: Transformation and development The market share of wealth management companies continues to increase

Although we are used to calling it "bank wealth management", many wealth management products are no longer issued by banks, but are issued by wealth management companies under the bank.

It is an internationally accepted practice to carry out asset management business by independent legal entities. Since the official opening of my country's first bank wealth management company in June 2019, the wealth management business has bid farewell to the bank-led model and entered a new era of corporate operations. As of the end of 2024, there were 32 financial management companies that had been established.

The report shows that the market share of financial management companies is continuing to increase. As of the end of 2024, the number of surviving products of wealth management companies reached 24,300, with a surviving scale of 26.31 trillion yuan, an increase of 17.09% from the beginning of the year, accounting for 87.85% of the entire market.

Experts said that at present, the market demand for bank wealth management is relatively strong. Financial management companies should continue to innovate products and services, improve their investment and research capabilities and professional level, and meet the diversified and differentiated investment and financial management needs of the people. (Reporter Li Yanxia)