[The Epoch Times, November 24, 2022](Comprehensive report by Epoch Times reporter Liu Yi) The enthusiasm of listed companies in mainland China to purchase wealth management products has declined this year. As of November 22, the scale of subscriptions for wealth management products by listed companies has decreased by 18.85% compared with the same period last year. Some people in the industry believe that this is due to the decline in the income of wealth management products and the need for more reserve funds to ensure stable cash flow under the impact of the epidemic.
According to data from data service provider Wind, from this year to November 22, a total of 1,052 listed companies have subscribed for wealth management products (ordinary deposits, structured deposits, bank wealth management, brokerage wealth management, trust, private equity funds, etc.) with a total amount of 977.55 billion yuan In RMB, the scale decreased by 18.85% compared with the same period last year.
In the third quarter of this year, the number of companies and the subscription scale of A-share listed companies that subscribed to wealth management products also declined compared with the second quarter.
In this regard, “Securities Daily” quoted CITIC Securities chief economist Mingming’s analysis on November 23, saying that the enthusiasm for the allocation of wealth management products of listed companies is now cooling down. Affected by uncertainties such as the epidemic, some listed companies need more reserve funds to ensure stable cash flow.
In addition, Xue Hongyan, deputy director of the Star Chart Financial Research Institute, said that since the beginning of this year, the average profitability of listed companies has declined, and there is less spare money available for investment; The volatility of products has increased significantly, which has also reduced the willingness of listed companies to buy to a certain extent.
The mainland wealth management product market has recently encountered huge shocks.
According to data from Wind on November 17, as of November 16, among the approximately 34,000 wealth management products, nearly 13,000 have fallen below the net value, accounting for nearly 40%.
Hong Hao, chief economist of hedge fund GROW Hong Kong, tweeted on the 17th: “Since October, due to the surge in short-term interest rates, in general, nearly 1/3 of the 30,000 wealth management products have fallen below Net worth. This could get worse before it gets better.”
In the face of market turmoil, investors began to redeem a large number of bank wealth management products to avoid greater losses. As the scope of redemption expanded, it triggered more huge redemptions of bond funds and wealth management products, which evolved into a vicious circle from redemption to net worth decline, and then to redemption.
In the face of a huge wave of redemptions, the wealth management subsidiaries of banks such as Bank of China, China Merchants Bank, Industrial Bank, and China Zheshang Bank have publicly called on investors to remain calm, saying that the impact on the bond market is controllable, trying to appease investors .
Li Yelin, a postdoctoral fellow at the Bank of China Research Institute, suggested to investors that at present, there is still room for market interest rates to be lowered, and the financial market environment is also constantly changing. Investors should rationally adjust their risk appetite and investment period, and make choices based on understanding the scope of product investment targets. Financial products that match your needs.
Responsible editor: Lin Congwen