After the rapid growth in the second half of last year, since this year, the “expansion” of bank financial management seems to have pressed the pause button, and both the number of products and the survival scale of financial management have decreased.
According to the statistics of the first financial reporter, as of April 27, the number of bank financial products was about 31300, about 5000 less than last year; By the end of March, the existing scale of financial products had reached 28.37 trillion yuan, a decrease of more than 600 billion yuan compared with the end of last year.
Insiders interviewed by the reporter said that since this year, the “shrinkage” of bank financial management has been related to the centralized closure of old products and the limited development of financial management business of some small and medium-sized banks on the one hand, and the reduction of new product issuance on the other hand. Previously, due to the obvious withdrawal of net value of financial products, investors’ enthusiasm for purchasing financial management has been weakened. In addition, “referring to previous experience, there is a general phenomenon of scale withdrawal in bank financial management in the first quarter, with seasonal characteristics.” A person in charge of the investment and Research Department of a financial subsidiary of a large state-owned bank told reporters.
Despite the “double reduction” in bank financial management, there are still some positive signs: first, the survival scale of financial products is still growing year-on-year; Second, the number of market investors continued to increase, with 5.58 million new investors in the first quarter; Third, the overall net worth transformation of financial products is progressing steadily, with the scale of net worth products accounting for 94.15%, an increase over the same period last year and the end of last year.
why both quantity and scale have decreased
In the case of negative growth in the first half of last year, the scale of bank financial management increased by 3.2 trillion yuan in the second half of last year, which led to positive growth in the whole year. However, this growth trend could not be sustained in 2022.
According to the statistics of China financial network, as of April 27, the number of bank financial products was about 31300, about 5000 less than 36300 at the end of last year; Not only in terms of quantity, but also in terms of survival scale, the bank financial management Registration Center recently released the profile of bank financial management market in the first quarter of 2022. As of the end of March, the survival scale of financial products reached 28.37 trillion yuan, compared with 29 trillion yuan at the end of last year.
“It does shrink slightly.” Zhang Licong, chief asset management and interest rate bond interest rate analyst of Citic Securities Company Limited(600030) research department, told the first financial reporter that after the transition period of the new asset management regulations expired at the end of last year, some old non net worth products were closed. At the same time, some small urban commercial banks and rural commercial banks changed from asset management to consignment after the development of financial management business was blocked, and a number of financial products were closed, reducing the number of financial management products.
Compared with the closure of non net worth old products, the pressure drop of financial products of small and medium-sized banks may be more obvious. After all, with the steady advancement of financial net worth, the scale of stock financial products that need to be rectified is gradually decreasing; At present, more and more small and medium-sized banks choose to sell on a commission basis, and their financial products will face disposal. This is also confirmed by the data. As of April 27 this year, the number of existing financial products of urban commercial banks and rural financial institutions was about 18500, down 1600 from 20200 at the end of last year, accounting for about one third of the decline in the whole market.
In fact, this trend has also been highlighted before. According to the data disclosed by the supervision, by the end of 2021, the number of institutions with existing financial products had been reduced by 90 compared with that before the release of the new asset management regulations. The main participants of the reduction were small and medium-sized banks. More and more small and medium-sized banks chose to participate in the financial market through consignment. Among the 97 consignment banking institutions, the number of urban commercial banks accounted for the most, reaching 90.7%.
For small and medium-sized banks with a financial management scale of less than 100 billion yuan, the establishment of a financial management subsidiary is not the best choice. Through consignment, on the one hand, it can maintain the stock customers and meet the investment needs of customers. On the other hand, it can earn intermediate business income through consignment and make up for the disadvantage of the lack of its own product line. Moreover, compared with other non bank institutions, there are views that small and medium-sized banks have their unique advantages in developing consignment sales. On the one hand, they have regulatory advantages; On the other hand, regional advantages.
In addition to the above reasons, Zhang Lichong also told reporters that in the first quarter of this year, the Russian Ukrainian crisis, the US Federal Reserve’s interest rate hike and reduction table, and the disturbance of the Chinese epidemic led to a significant pullback in China’s equity market, resulting in a serious pullback of fixed income + product net value. However, the concept of investors has not completely stepped from the rigid exchange era into the era of full net value, and the acceptance of financial product net value pullback is poor, which has dragged down the issuance of new products, The number of financial products issued, including fixed income + products, has been significantly reduced, resulting in a “double reduction” in the number and scale of financial products.
At the same time, “banks have great deposit pressure in the first quarter, and their marketing efforts tend to pull deposits, which may also be one of the reasons for the decline in the number and scale of bank financial products.” A senior banking practitioner told reporters. Moreover, bank financial management tends to impulse at the end of the year, and there is the pressure of scale retreat in the first quarter.
In addition, it should also be noted that “since this year, on balance sheet deposits have been relatively tight, which may also be a factor affecting the scale of financial management.” The person in charge of the investment and Research Department of the financial management subsidiary of the above-mentioned large state-owned bank told reporters that after all, most bank financial management is transformed from deposits.
there are still positive signs
Although the number and scale of bank financial products have both decreased, it should be mentioned that compared with the same period last year, the survival scale of financial products has increased by 13.34%; Moreover, in terms of the decline, the scale of non breakeven financial management of banks retreated by 900 billion yuan in the same period of 2020 and 2021, 3.5% and 3.2% lower than that at the beginning of the year, respectively. “In contrast, the scale of bank financial management showed stronger resilience in the first quarter of this year.” A senior banker told reporters.
At the same time, in terms of the size of investors, 5.58 million financial investors were added to the bank financial market in the first quarter. By the end of March, the number of investors holding financial products had reached 86.88 million, an increase of 6.86% over the beginning of the year. Among them, there are 86.14 million individual investors, accounting for 99.15%; 740000 institutional investors, accounting for 0.85%. In addition, in terms of net worth transformation, the comprehensive net worth transformation of bank financial management has been steadily promoted. The scale of net worth products accounted for 94.15%, an increase of 21.12 percentage points over the same period last year and 1.18 percentage points over the end of last year.
In the view of insiders, with the increase of the number of investors, the demand for financial products will further increase. Under this background, the scale of financial management is expected to grow in the future. The above-mentioned senior practitioners in the banking industry told reporters that with the rapid expansion of the number of financial investors, the portrait of financial customers is expected to change, that is, the distribution of risk appetite may show a divergent trend, which is a great opportunity for financial institutions.
“At present, financial institutions are waiting for the adjustment of the capital market to issue more new products.” Zhang Lichong said. The reporter learned at the same time that financial institutions have seized market opportunities to increase issuance. “Our products are mainly cash management products and fixed income products. As for mixed products, they are currently issued for 2 ~ 3 years and sell well.” The person in charge of the investment and Research Department of the aforementioned financial management subsidiary of state-owned banks told reporters, “in the current position, the winning rate in 2-3 years is still relatively high.”
In fact, the current period of financial products is continuing to lengthen. Officially disclosed data show that in March, the weighted average period of newly issued closed-end products was 456 days, an increase of 61.70% year-on-year. In the view of insiders, the extension of product term is conducive to the concentration of long-term funds and the steady development of the real economy. It is reported that as of the end of March, bank financial products supported the real economy by investing in bonds, non standardized creditor’s rights, unlisted equity and other assets, with a scale of about 25 trillion yuan, a year-on-year increase of 4.61%.
Zhang Lichong also suggested that financial institutions are not suitable to intensively issue a large number of fixed income + products at present. They can first issue some short-term pure fixed income products, and the net value performance will be more stable than fixed income + products; At the same time, some fof products can be launched to smooth the fluctuation of net value through decentralized investment and bring better financial management experience to investors; In addition, while issuing products, we should do a good job in investor education, help customers understand the financial knowledge in the era of net worth, and correctly understand the withdrawal of net worth.
