The scale of wealth management sub assets of joint stock banks exceeds that of state owned banks!

Mondo Finance Updated on 2024-02-29

Recently, Suyin Wealth Management, Hangzhou Bank Wealth Management, Ningbo Bank Wealth Management and other bank wealth management subsidiaries released their 2023 report cards. On the whole, the issuance of products by banks' wealth management subsidiaries increased last year, and the scale of management remained stable.

It is worth noting that the wealth management market will change in 2023, that is, some of the wealth management subsidiaries of the largest state-owned banks have experienced a significant reduction in scale and have not yet recovered; However, the wealth management subsidiaries of some leading joint-stock banks have surpassed them with stable and diversified product strategies.

The wealth management of joint-stock banks surpasses that of large state-owned banks

According to the Annual Report on China's Banking Wealth Management Market (2023), as of the end of 2023, the scale of the bank wealth management market is 268 trillion yuan, a total of 3 new wealth management products throughout the year110,000, raising 5708 trillion yuan, the number of investors in wealth management products increased to 11.4 billion, creating 698.1 billion yuan of income for investors.

Specifically, in 2023, CMB Wealth Management will be 2The scale of 4 trillion yuan topped the list, becoming the largest wealth management company; IB Wealth Management is based on 22 trillion yuan in scale; CNCBI Wealth Management has increased its scale by 200 billion yuan in the past year, reaching 17 trillion yuan, successfully surpassing ICBC Wealth Management and becoming the third largest wealth management company.

This achievement demonstrates the strong strength of CMB Wealth Management, IB Wealth Management and CNCBI Wealth Management in the market competition. In addition, Everbright Wealth Management, Ping An Wealth Management and SPDB Wealth Management joint-stock bank wealth management companies have also developed rapidly, with an increase of more than 100 billion yuan last year. Among the wealth management companies of city commercial banks, the scale of Suyin wealth management increased by 200 billion yuan last year, reaching 500 billion yuan.

However, in stark contrast, the wealth management subsidiaries of large state-owned banks, which have long been widely regarded as the main providers of wealth management products for their scale and stability, have generally shrunk in size and retreated to the second echelon. The wealth management subsidiaries of the four major banks of industry, agriculture, China and construction all fell by more than 100 billion yuan compared with the beginning of the year, and only the wealth management of the Bank of Communications increased by more than 140 billion yuan against the trend.

Some industry insiders said that among the 29 wealth management companies with complete data disclosure, only 14 wealth management companies maintained positive growth in the scale of wealth management, deducting the base factor, and the contribution to the scale growth was mainly in the joint-stock bank wealth management companies.

On the whole, the bank wealth management market is constantly growing, creating considerable returns for investors. In recent years, with the changes in the market environment and the diversification of consumer demand, the wealth management subsidiaries of joint-stock banks have begun to emerge, and even surpassed the state-owned banks in some areas.

The scale of management and channels need to be improved

In 2023, China's wealth management market has undergone a major reshuffle, with the wealth management subsidiaries of joint-stock commercial banks surpassing the wealth management subsidiaries of major state-owned banks in terms of asset size, which may be related to the following factors:

First of all, the wealth management subsidiaries of these leading joint-stock banks pay attention to product diversification. They not only provide traditional wealth management products, but also actively launch innovative products to meet the needs of different investors. This diversified product strategy has allowed them to attract more investors, thereby expanding their market share.

Second, these wealth management subsidiaries focus on risk management and asset allocation. They have extensive experience and a professional team in product design and portfolio management. Through scientific risk management and reasonable asset allocation, they can effectively reduce investment risks and improve investment returns, thus winning the trust and favor of investors.

In addition, the "negative feedback of financial management" has caused both changes in investors' psychology and banks' financial investment behavior. In November 2022, the bond market adjusted deeply, which in turn triggered product redemptions, which in turn led to further bond redemptions and triggered a new round of product redemptions. After the shock, the risk appetite of wealth management investors has been further reduced, and bank wealth management products have pursued the attribute of "stable and low volatility".

At present, the challenges faced by wealth managers are also a hot spot in the market. Guosen ** banking analysts believe that there are three breakthroughs in the follow-up expansion of bank wealth management:

The first is to step on the configuration rotation. With the gradual implementation of the policy of credit easing and the rotation of large types of assets to improve residents' risk appetite, the current customer recognition of bank wealth management hybrid and equity products is average, but the "fixed income +" products still have the potential to expand.

The second is to innovate the product structure. Recently, the wealth management sub-issuance of "fixed income + option" products linked to CSI 500 or CSI 1000 is essentially to tap opportunities for income thickening under the market.

The third is to expand sales channels. Judging from the current wealth management scale and asset scale indicators in the balance sheet, the wealth management channels of large state-owned banks have not yet been fully explored. With the decline in the level of "broken net", customers are gradually accepting low-volatility products, which brings opportunities for the recovery of banks' wealth management channels.

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