Affected by the adjustment of stock and bond markets outside China, the average income of financial products sold by many banks showed negative income. As of March 15, 1855 products in the bank financial market “broke the net”.
Affected by this, recently, CCB financial management, China Post Financial Management, ICBC financial management, Huaxia financial management, Puyin financial management and other bank financial management subsidiaries issued announcements and articles to withdraw the net value of some financial products under the recent volatile market, so as to appease the investor sentiment.
On March 16, relevant experts said in an interview with the reporter of Huaxia times that the decline in the net value of multiple financial products in this round can make investors truly realize that they should break the rigid cashing and be responsible for their own profits and losses. At this stage, commercial banks, financial companies and other market entities should have the courage to undertake the main responsibility and work of bank financial investor education.
1855 products “broken net”
“Before, I only worried about not selling. Now I not only can’t sell, but also have to deal with complaints.”
The fund manager Yueyue (pseudonym) told our reporter that the recent market situation is not good, the sales index of financial products can not be reached, and the number of complaints has increased greatly because many investors have suffered losses.
Compared with public funds, the life of bank financial products is more difficult.
According to the data, as of March 15, after excluding the products without net value within half a year, there were more than 28800 financial products in the bank financial market, of which 1855 products were “broken net”, accounting for 6.44%.
The reporter noticed on the black cat complaint platform that the number of complaints about bank financial products is also increasing recently.
On March 11, an investor complained that the “fixed income products held by Anxin for a minimum of 270 days (consignment CCB financial management)” he purchased in China Construction Bank Corporation(601939) had suffered losses in succession recently. The investor asked, “if there is a risk in bank investment, it can be covered up? Does the bank have the obligation of supervision and prevention? It is obviously low-risk. It is normal to have less income, but is the bank responsible for losing principal every day?”
The reporter noted that the above “Anxin” product is a fixed income product with a risk level of R2 and low risk. Since its establishment, the annualized rate of return has been 3.77%. Since the investor purchased the product on December 27, 2021, the unit net value of the product has been above 1.1232. The investor purchased 100000 yuan, and the accumulated reference profit and loss since holding is 7.63. The investment income is positive, but the income is low.
China Construction Bank Corporation(601939) in response to the above-mentioned investors, they said that the net value of the product fluctuated recently, mainly because the bond market as a whole experienced a large adjustment. Compared with stocks and financial derivatives, bond assets have the characteristics of small fluctuation and stable cash flow, which are suitable for long-term holding. It is suggested that investors extend the holding period appropriately.
This investor is only a microcosm. Since the market shock, the yield of financial products has been lower than investors’ expectations and even suffered losses. Compared with fixed income products, the losses of hybrid and equity products are more obvious. As investors’ impression of “breakeven” of bank financial management has not been completely broken, it is obvious that the tolerance of bank financial loss is lower, and the amount of bank complaints has increased greatly.
On March 16, several bank financial management subsidiaries including CCB financial management, China Post Financial Management, ICBC financial management and Puyin financial management issued announcements, while Huaxia financial management, Puyin financial management, BOCOM financial management and other financial management subsidiaries issued an interpretation of the net value withdrawal, aiming at the net value withdrawal of some financial products under the recent volatile market, so as to calm the investor sentiment.
“The net value of the product has fluctuated and retreated to a certain extent. We sympathize with your uneasiness and concerns and apologize again,” Puyin financial said in the announcement
CCB financial wrote to investors that the recent sharp fluctuations in the international market have had a short-term impact on some of its products, but it does not change the development trend of Youdun enterprises. The future investment strategy will still focus on fixed income, diversified and decentralized allocation.
China Post Financial Management also wrote to investors that short-term fluctuations are normal, and it is suggested to stick to long-term holding with more patience.
ICBC financial management said on the platform that the fluctuation of product net value needs to be treated rationally under the volatile market.
Huaxia financial management reminds investors that investors do not necessarily lose money when their net worth falls. The net value of financial products changes with the price of investment products invested, which can be understood as “floating loss” or “floating profit”. It will really become a substantial loss or profit only when investors redeem or the product expires.
long view of scenery
According to the data of the notice on consumer complaints in the banking industry in the fourth quarter of 2021 issued by the China Banking and Insurance Regulatory Commission, there were 3802 complaints involving financial management business in the fourth quarter of 2021, accounting for 4.2% of the total complaints. It is the third largest complained business in the banking industry after credit card and loan business.
Several financial managers analyzed the reasons for the recent net value fluctuation of financial products in the announcement. After combing by our reporter, it is mainly the impact of resonance adjustment of stock market and bond market outside China.
According to the analysis of ICBC financial management, the exogenous impact brought by the international environment and emergencies, such as the tense global liquidity, the sudden geographical conflict between Russia and Ukraine, and the uncertain world economic prospect, is the main reason for this round of adjustment.
According to the analysis of China Post Financial Management, the external environment and the rise of China’s risk-free yield have put pressure on the valuation adjustment of a shares, especially the two high-tech sectors; The performance forecast for the first quarter of 2022 disclosed that the profit growth rate of some enterprises was lower than expected, resulting in the adjustment of the equity market. The interest rate cut, LPR compression, the central bank’s continuous large-scale Omo (central bank’s open market operation) before the Spring Festival, the stable cross year liquidity, the over issuance of special bonds in February, the over expected launch of social finance in January and the obvious relaxation of real estate policies across the country have resulted in a significant increase in the volatility of China’s bond market and the upward adjustment of bond yield.
Looking forward to the future, Puyin financial management believes that the recent double killing of stocks and bonds and the deep correction will not last long.
CCB financial said that the scenery should be long-term. In the process of market pessimism, there are also some positive factors: after three months of adjustment, the cost performance of the A-share market gradually appears, and the effect of China’s steady growth policy is expected to gradually appear. The future investment strategy will still focus on fixed income, diversified and decentralized allocation.
ICBC’s financial products also focus on fixed income. The bank said that it was adjusting its strategies in time, such as adjusting the duration of bond portfolio, strengthening market analysis and judgment, and flexibly adjusting stock positions according to the market situation.
According to the analysis of China Post Financial Management, the yield of the bond market may rise gradually under the main line of wide credit and stable growth throughout the year; With the substantial adjustment of the equity market, the investment value has begun to appear. At present, it may be the time to actively layout the equity market.
“Previously, bank financial products were mainly cash management products and fixed income products, which were relatively stable. Now the number of equity products has increased, and such products are more related to the financial market, so the volatility affected by the market is also greater.” Dong ximiao, chief researcher of Zhaolian finance, said.
“Although some investors have not cashed their expected profits for a long time, they still haven’t cashed their real financial products.” Liu Yinping, an analyst at rong360 Digital Technology Research Institute, believes that the decline in the net value of multiple financial products this round can make investors realize that they really want to break the rigid cashing and be responsible for their own profits and losses.
“At present, the risk tolerance of bank financial investors is generally not high. It is expected that in the future, financial products will still focus on medium and low-risk fixed income financial products, and financial subsidiaries should be more cautious in investing in the equity market.” Liu Yinping said.
Dong ximiao believes that in 2022, the bank financial management market has ushered in the era of new regulations on post asset management, and the development space and potential are still very huge. In the new year, it is expected that the scale of the financial management market will exceed 30 trillion yuan and there will be more than 100 million investors.
“In the next stage, the regulatory authorities should strengthen and improve the supervision of financial management business, financial management companies should improve their professional and characteristic development ability, small and medium-sized banks should accelerate the development of financial product consignment business, and all parties should make concerted efforts to jointly promote the financial management market to serve the real economy efficiently and flexibly, so as to better meet the needs of investors to balance risks and benefits.” Dong ximiao said.
