Bank Wealth Management Products' Performance Benchmarks Downgraded Intensively

Reporter Peng Yan

Recently, several wealth management companies including China Merchants Bank Wealth Management, Ping An Wealth Management, Xingyin Wealth Management, Agricultural Bank Wealth Management, Bank of Communications Wealth Management, and China Post Wealth Management have successively adjusted the performance benchmarks of some of their products, generally with significant reductions. Overall, traditional fixed-value and interval-based benchmarks are gradually being phased out, shifting toward standardized pricing models linked to market interest rates and indices.

Xue Hongyan, a special researcher at the Shanghai Commercial Bank, stated that this move aligns with the downward trend in market interest rates and regulatory compliance requirements. It helps guide investors to establish rational return expectations and promotes high-quality development of the wealth management industry.

Specifically, Xingyin Wealth Management recently announced that the performance benchmark for “Xingyin Stable Growth ESG Daily Income Increment 74” fixed-income product has been adjusted from a fixed annualized range of 1.7%–2.6% to the seven-day notice deposit rate of the People’s Bank of China (currently 0.75%), with an 185 basis point reduction in the cap. The benchmark for “Xingyin Stable Growth Daily Income Increment 100 No. A” has also been changed from an annualized 1.7%–2.6% to the same notice deposit rate, effective March 10, with the same cap reduction.

Minsheng Wealth Management and Ping An Wealth Management have also followed suit. Minsheng Wealth Management’s “Gui Zhu Fixed Income Enhancement Two-Year Open-Ended Product No. 2” benchmark was lowered from 4.0%–6.0% to 2.6%–3.1%, with the lower limit down by 140 basis points and the upper limit down by 290 basis points; Ping An Wealth Management’s “Qiyuan Stable Profit Daily Open Product No. 25 B” benchmark was reduced from 1.50%–2.10% to 1.10%–1.70%, with both limits decreased by 40 basis points.

Yang Haiping, a researcher at the Shanghai Financial and Legal Research Institute, said that the main reasons for this adjustment are twofold: first, compliance requirements— the “Measures for the Disclosure of Asset Management Product Information of Banking and Insurance Institutions,” which will be officially implemented on September 1 this year, explicitly require disclosure of benchmarks, which must be consistent and not arbitrarily adjusted after disclosure; second, market fluctuations—since the beginning of the year, bond markets have experienced significant volatility. Continuing to use fixed or interval benchmarks could force mid-term adjustments due to market changes, conflicting with new regulations. Linking benchmarks to indices or market interest rates can better adapt to market volatility and meet compliance standards.

Yang Haiping believes that this adjustment will mainly impact the industry in three ways: first, further weakening the expectation of rigid repayment, consolidating the achievement of “breaking the rigid guarantee”; second, standardizing marketing behaviors of wealth management firms, reducing false advertising and misleading sales; third, encouraging institutions to focus more on comprehensive, full-process investor services.

Tian Lihui, a professor of finance at Nankai University, stated that this change will reshape the industry’s competitive logic, shifting from “attractiveness based on benchmark figures” to “strength in investment management,” pushing institutions to focus on strengthening their research and investment capabilities.

Yang Haiping suggests that ordinary investors should actively adapt to the new performance benchmark presentation format, downplay the weight of benchmarks in investment decisions, and through learning or thorough communication with wealth managers, gain a deeper understanding of the underlying assets’ volatility, investment strategies, and returns. Investors should also consider the brand strength and full-process service level of wealth management firms when making investment choices.

(Edited by: Qian Xiaorui)

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