Since this year, the A-share market has been subject to shock correction, the income of many bank financial products has fallen, and the net value of many financial products has “broken 1”.
According to the data, as of February 21, of the 29288 financial products in the whole market (excluding the products without net value in recent June), a total of 794 products announced the latest unit net value of less than 1.
the proportion of net worth “broken 1” products increased
Since this year, due to the shock correction of the A-share market, the proportion of “broken net” financial products has increased significantly compared with the end of last year. According to the data, as of February 21, excluding the products managed by banks, there were 8825 products managed by wealth management companies in the whole market, and 536 products with the latest unit net value less than 1, accounting for 6.07%. By the end of 2021, there were 8009 products managed by wealth management companies, and 88 products with the latest unit net worth less than 1, accounting for 1.1%.
According to the statistics of East Asia Qianhai Securities Research Institute, a total of 13953 financial products with net value disclosed in the third week of February 2022 (February 14-20). Among them, 517 products were disclosed on the previous day and 13436 products were disclosed on the previous week. The net value growth rates of the two types of samples are mostly between 0% – 0.5%. Among the samples of products with net worth on the day before disclosure, the number of products with net worth falling relative to the previous period was 104, and the median growth rate of net worth was 0.03%; In the sample of products with net worth one week before disclosure, the median growth rate of net worth was 0.04%.
Source: East Asia Qianhai securities
“Generally speaking, the higher the proportion of equity assets allocated to financial products and the shorter the establishment time, the more unstable the net value of products and the higher the probability of net value decline.” Liu Yinping, an analyst at rong360 Digital Technology Research Institute, said that in the past two years, financial companies have increased their equity investment, and fof financial products have grown rapidly. When the stock market is good, such products can bring higher investment returns to investors, but they will also lead to losses of financial products in the case of stock market shocks.
performance differentiation of equity products
From the perspective of equity financial products issued by financial companies, the performance is obviously differentiated.
According to the data of China financial network, so far, there are 19 equity financial products managed by financial companies. Among them, the latest unit net worth of 9 products exceeds 1, among which the latest unit net worth of “ICBC wealth · ICBC wealth series ICBC quantitative wealth management – Hengsheng configuration wealth management products” is the highest, which is 2.0139; The latest unit net value of “fof financial products will be opened in three months on the 1st of Huaxia financial longying equity g” is 1.4223 Everbright wealth management has two products that perform well. The latest unit net worth of “sunshine red ESG industry selection” is 1.2151, and the latest unit net worth of “sunshine red infrastructure REITs optimization No. 1” is 1.1305.
At the same time, the net value of 10 equity financial products fell below 1.5% Among them, the latest unit net value of “sunshine red health and safety theme selection” issued by Everbright financial management was only 0.7669, and the decline of the other nine products was within 10%.
what is the future product release strategy?
In the current bank financial market, financial products are still dominated by fixed income. At the same time, the issuance of “fixed income +” products continues to increase, and financial companies increase their income through multiple assets and strategies.
Under the test of market shock, what is the future product issuance strategy of financial management companies? China International Capital Corporation Limited(601995) analyst Wang Ziyu said that since the beginning of 2021, the circulation of products with rights (including hybrid and equity financial products) has remained volatile and rising. Some head financial institutions have fully recognized the development opportunities of equity asset investment and have also increased the issuance of products with rights at the strategic level; The impact of the adjustment of the stock market on the issuance of financial products with rights is mainly reflected in the re selection of the time point of product issuance and the strength of fund-raising. In the medium and long term, the mode of accelerating the layout of equity asset investment of most financial institutions has not changed.
“Under the expectation that the downward pressure on the economy is increasing and there is still room for downward interest rates, the yield of bank financial management may be under pressure.” Everbright Securities Company Limited(601788) Wang Yifeng, chief analyst of the financial industry, believes that wealth management companies are expected to further strengthen the expansion of “fixed income +” products, so as to improve investment income and enhance product competitiveness, and serve as an important starting point for expanding AUM. At this stage, “fixed income plus” and mixed financial products are important ways for financial companies to gradually carry out equity investment. It is expected that in the medium and short term, financial management companies will continue the allocation idea of focusing on Pan fixed income products, gradually enrich the layout of equity products and gradually strengthen equity investment.
