The net worth transformation of financial management was promoted in an orderly manner. By the end of June, the existing scale of financial products had reached 25.8 trillion, a year-on-year increase of 5%. The survival scale of net worth financial products is 20 trillion, accounting for 79%, which is 12 and 24 percentage points higher than that at the beginning of the year and year-on-year respectively. By the end of June, financial assets had invested 3.75 trillion in China Africa standard, accounting for 13.08%, an increase of 0.6 trillion and 2 percentage points over the end of 2020, which may be due to the stricter identification of banks and other reasons. We believe that the proportion of high-yield non-standard may continue to decline under the same policy. The management scale of cash products accounted for 30.15% at the end of June, and there may be a decline in the scale and yield in the follow-up.
China Merchants Bank Co.Ltd(600036) and Bank Of Ningbo Co.Ltd(002142) released the semi annual report of 2021, with beautiful performance growth. They continue to be optimistic about the mid industry report. It is suggested to pay active attention to it and lock the deviation between valuation and value in the continuous change of economy and policy. The main line of individual stocks insists on optimizing assets and businesses that meet the direction of structural adjustment, and recommends banks with obvious wealth management and location advantages. Starting from the logic line of wealth management, it recommends China Merchants Bank Co.Ltd(600036) , Ping An Bank Co.Ltd(000001) , Bank Of Ningbo Co.Ltd(002142) , Postal Savings Bank Of China Co.Ltd(601658) ; Recommended from the perspective of regional economic advantages: Bank Of Jiangsu Co.Ltd(600919) , Bank Of Hangzhou Co.Ltd(600926) .
Non breakeven financial management increased by 5% year-on-year, and cash management products accounted for 30.2%
By the middle of 2021, the scale of non breakeven financial management in stock was 25 trillion, with a year-on-year increase of 5.4%. Among them, the remaining balance of fixed income financial products was 22.8 trillion, a year-on-year increase of 15%, accounting for 88.2%. The survival scale of net worth financial products is 20 trillion, accounting for 79%, which is 12 and 24 percentage points higher than that at the beginning of the year and year-on-year respectively. In June, the central bank issued the notice on regulating the management of cash management financial products, which stipulates that the scale of cash management products accounted by amortized cost method shall be controlled, and the net asset value of cash management products accounted by amortized cost method at the end of the month shall not exceed 30% of all financial products. By the end of June, the proportion of cash management financial products was 30.15%. With the improvement of cash management products, the total scale of cash management products and the scale of single products may gradually decline, and the income of products relative to other products may also decline.
The proportion of open products increased, and the duration of closed products lengthened
In the first half of the year, the proportion of open-end products in non breakeven financial management of banks further increased, accounting for 93% of the total scale of non breakeven financial management raised that year, with a year-on-year increase of 3.86 percentage points. With the promotion of the new regulations on cash, the regular open financial issuance of banks may be accelerated to meet the needs of some cash financial products. From the perspective of closed-end financial management, the weighted average term of new closed-end products in the whole market showed an upward trend in the first half of the year, with 281 days in June, an increase of 13.13% compared with December 2020. The above changes reflect that under the new regulations of asset management, the term design of financial products is more in line with regulatory requirements, and the term mismatch degree is constantly corrected.
The proportion of non-standard assets increased, and the yield decreased compared with the beginning of the year
From the perspective of financial asset allocation, the non-standard proportion increased by 2.2 percentage points to 13.1% compared with that at the end of 2020. Under the constraint of term mismatch under the new asset management regulations, the non-standard proportion showed a downward trend in 2019 and 2020. The increase of non-standard proportion in the first half of the year may be related to the stricter recognition of non-standard by banks. However, from the perspective of the pressure drop of supervision on trust, if the relevant policies remain unchanged, The scale of high-yield non-standard in the future may continue to be compressed. The asset side investment of bank financial management is still dominated by fixed income. The total proportion of bonds, bank deposits and certificates of deposit is nearly 77%, and the proportion of equity (4.08%) is 0.7 percentage points lower than that in 2020. By the end of June, the proportion of medium and high risks and high risks of financial products was only 0.48%. In terms of yield, the weighted average yield of financial products in June was 3.52%, down 37bp from the beginning of the year and up 7bp from the same period last year.
Risk tip: the deterioration of asset quality caused by economic downturn exceeded expectations.
