Deposits "move", financial products are more popular?
2024-06-10
182 CommentsAccording to data from Puyi Standards Statistics, as of July 30th, the existing scale of wealth management was 296.2 trillion yuan, an expansion of 1.1 trillion yuan from the 285.2 trillion yuan scale at the end of June, with over 90% of the scale being fixed-income products.
As deposit interest rates continue to decline, the trend of residents and corporate deposits moving towards wealth management and other asset management products has become increasingly evident.
1. Which wealth management products are currently more favored by corporate investors? What are the reasons?
2. Looking at the product structure, what are the characteristics and trends of the current popular products in terms of product design, asset allocation strategies, and performance?
3. What are the new changes in the asset allocation needs of corporate investors? How can wealth management companies meet the needs of corporate investors?
4. For businesses that want to choose bank wealth management products for financial management, what suggestions are there?
1. Which wealth management products are currently more favored by corporate investors? What are the reasons?
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At present, the wealth management products that are more favored by corporate investors mainly include: structured deposits, medium and low-risk bank wealth management products, and cash management products, etc.
The main reasons for the attention to these products include:(1) Higher Stability: The aforementioned financial products have a lower risk profile, focusing on the stability of returns, and currently, enterprises place great emphasis on the safety and flexibility of funds when managing capital. Therefore, they have a preference for the aforementioned products.
(2) Return Potential: Despite the impact of interest rate cuts, the return on structured deposits has decreased, but compared to pure deposit products, the returns of structured deposits and medium to low-risk bank financial products still offer greater appeal.
(3) Flexibility: Cash management products and the like provide good liquidity management tools, facilitating enterprises to access funds at any time to meet their temporary capital needs.
Overall, in a market environment with fluctuations, corporate investors tend to adopt a cautious investment attitude, with risk, return, and capital liquidity being their main concerns. This is to achieve the goal of ensuring the safety of funds, obtaining higher returns, and meeting their flexible capital needs. As a result, structured deposits, medium to low-risk bank financial products, and cash management products have become the ideal choices for corporate investors in the current market environment.
2. Looking at the product structure, what are the characteristics and trends of the popular products in terms of product design, asset allocation strategies, and performance?
Product Design Features:
(1) Flexibility: Due to the increased demand for capital liquidity by investors, some financial products offer high flexibility in their design to accommodate the short-term capital needs of enterprises.
(2) Risk Control: Greater emphasis is placed on risk control during product design, employing various methods to diversify risks, such as portfolio investment and setting stop-loss points.
(3) Improved Transparency in Information Disclosure: Based on regulatory policy requirements and to increase investor confidence, the disclosure of financial product information has become more authentic and transparent, allowing investors to have a clearer understanding of the investment direction and asset allocation.
Asset Allocation Strategy Features:(1) Diversification: To reduce the risk associated with a single asset, wealth management products tend to diversify their asset allocation, covering different types of assets such as bonds, stocks, and money market instruments.
(2) Strategy Adjustment: As market conditions change, wealth management products will timely adjust their asset allocation strategies to cope with different economic cycles and market conditions.
(3) Risk Management: Advanced risk management tools and techniques are employed to mitigate the negative impacts brought by market fluctuations.
Performance Characteristics:
(1) Robustness: Bank wealth management investors generally have a low risk appetite, especially after experiencing the "net-breaking wave," some investors' acceptance of product net-breaking has decreased, making products that can better withstand market risks and maintain robust returns relatively more favored.
(2) Competitive Return Level: Against the backdrop of continuously declining deposit interest rates, the income advantage of wealth management products is gradually highlighted, and some products with higher return performance have begun to attract more attention.
3. What are the new changes in the asset allocation needs of current corporate investors? How can wealth management companies meet the needs of corporate investors?
Corporate investors' preferences in the field of asset allocation are undergoing a profound transformation, characterized by a strong demand for low-risk, stable return products. In this context, money market funds, cash management wealth management products, and some fixed-income bank wealth management products have become the preferred choices for corporate investors due to their unique advantages. The reason these products are highly favored is because of their robust asset allocation and investment strategies, focus on the layout of low-risk assets, and precise alignment with some deposit customers' dual needs for risk aversion and stable returns. In addition, for corporate demand deposits that are in trouble due to the rectification of manual interest supplementation, money market funds and cash management wealth management products, with their excellent liquidity management capabilities, not only ensure the flexible deployment of funds but also demonstrate income potential superior to traditional demand deposits while maintaining liquidity.
Currently, wealth management companies prioritize stability in product design. In terms of asset allocation strategies, there is a preference for selecting low-risk assets such as high-credit-rated corporate bonds, aiming to build a more solid defense line of returns and ensure the steady growth of investors' wealth.
4. What suggestions are there for enterprises that want to choose bank wealth management products for financial management?
For enterprises considering bank wealth management products for financial management, it is advisable to:
- Conduct thorough research on the product offerings, understanding the risk profiles, return potential, and investment strategies.
- Assess the creditworthiness and financial stability of the issuing bank or financial institution.
- Consider the liquidity needs of the enterprise and choose products that align with these requirements.
- Diversify investments to spread risk and potentially enhance returns.
- Regularly monitor the performance of the wealth management products and stay informed about market trends and economic conditions that may affect their performance.
- Consult with financial advisors or experts to ensure that the chosen products are suitable for the enterprise's financial goals and risk tolerance.Enterprises can combine their own liquidity management needs, expected return preferences, risk tolerance, and market conditions to make a portfolio allocation of bank's wealth management products. From the perspective of obtaining investment returns, enterprises can pay attention to some fixed-income products with a relatively stable investment strategy and low to medium risk. These products cover a variety of term types, operation modes, and investment strategies. Although the bond market trend has a certain degree of uncertainty in the short term, it may still have configuration conditions in the long run. In addition, the issuance of "fixed-income +" wealth management products by banks has been relatively active recently, and some strategy products such as "high dividends" and "preferred shares" have a certain market attention. Enterprises can pay attention to some strategy investment products that are compatible with market conditions according to their own needs, make comprehensive assessments, and make timely, batched, and cautious investments to capture phased investment opportunities under market trends. From the perspective of idle fund management, cash management products have a certain income advantage compared with other deposit products, and they have higher liquidity. Enterprises can consider using them as one of the important tools for liquidity management, which is conducive to improving the efficiency of fund use.