On March 20th, several wealth management subsidiaries, including Bank of China Wealth Management, CCB Wealth Management, Shangyin Wealth Management, and China Post Wealth Management, have recently issued intensive announcements announcing the reduction of their performance benchmark for their wealth management products. The lower limit of the performance benchmark for some products has fallen below 2%, and the performance benchmark for some wealth management products has been lowered by more than 200 basis points. Du Juan, a senior researcher at Su Shang Bank, told reporters that the continuous downward adjustment of performance benchmarks for wealth management products reflects a decrease in market expectations for future returns on underlying assets. This is related to the maintenance of low market interest rates, volatile adjustments in the bond market, the implementation of self-discipline mechanisms for interbank deposit rates, the gradual maturity of high-yield assets, and the scarcity of new high coupon assets; The second is to avoid the problem of excessive deviation between the actual yield of wealth management products and the performance benchmark, adjust investors’ expected returns, and avoid misleading; Thirdly, as the management and operation of wealth management products become increasingly standardized, the actual return rate follows market fluctuations, and the performance benchmark is correspondingly lowered. (Securities Daily)
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