Wealth Management Companies' Overall Non-Standard Investments Far Below 35% Red Line! Under the Temptation of High Returns, Over 3,000 Products "Heavily Concentrated" in Non-Standard Assets

Caixin News, March 19 (Editor: Wang Wei) — Recently, some media reports claimed that the proportion of non-standard assets in certain wealth management subsidiaries’ products exceeds 35%, surpassing regulatory red lines and causing market misunderstandings.

Based on reports from the Wealth Management Registration Center (“Wealth Management Registration”) and multiple wealth management companies’ reports, it is found that the overall market’s non-standard investment in wealth management products has been gradually shrinking. The total holdings of wealth management companies are well below the 35% regulatory red line, although some individual products have a high proportion of non-standard assets.

Overall Non-Standard Investment by Wealth Management Companies Is Below Regulatory Limits

Data from the Wealth Management Registration Center shows that in recent years, the overall non-standard investment in the market has been gradually decreasing. Although the decline is slow, the proportion remains low, and the industry’s compliance remains stable.

According to data from China Wealth Management Network, a subsidiary of the Wealth Management Registration Center, in 2022, the scale of non-standard allocations in wealth management products was 1.94 trillion yuan, accounting for 6.50%. In 2023, it decreased to 1.79 trillion yuan, or 6.20%. In 2024, it further declined to 1.74 trillion yuan, or 5.40%. In 2025, it slightly rebounded to 1.82 trillion yuan, but the proportion was only 5.10%. This indicates that over the past four years, the market’s non-standard investment proportion has consistently remained below 7%, as shown below:

Source: China Wealth Management Network, Caixin News compilation

In 2018, the former China Banking and Insurance Regulatory Commission issued the “Measures for the Administration of Commercial Bank Wealth Management Subsidiaries,” requiring that the balance of all wealth management products invested in non-standard debt assets must not exceed 35% of the net assets of the wealth management products at any time. (Available data shows that the net assets of wealth management products are an accounting concept, roughly equal to the scale of the products in business terms.)

Caixin News compiled reports from multiple wealth management companies, showing that the non-standard proportions in their products are significantly below the red line: for example, Hangzhou Bank Wealth Management’s non-standard scale is 90.74 billion yuan, accounting for 14.93% of its total wealth management scale; Guangfa Bank Wealth Management, Suzhou Bank Wealth Management, and Pudong Development Bank Wealth Management have proportions of 9.10%, 8.26%, and 6.28%, respectively; Huahua Wealth Management and CCB Wealth Management are below 3%, with BlackRock CCB Wealth Management holding zero non-standard assets. See below:

Source: Wealth Management Business Reports, Caixin News compilation

According to incomplete statistics from FaXun Wealth Management Network as of March 19, trust loans are the core non-standard assets in wealth management, with some city commercial bank wealth management subsidiaries’ trust loan proportions exceeding 80%. Major institutions, despite their large size, still strictly adhere to regulatory requirements.

High Concentration of Single Products

In a low-interest-rate environment, some wealth management companies have increased their allocation of non-standard assets in certain products to enhance competitiveness. According to incomplete statistics from FaXun Wealth Management Network, as of March 19, there are 3,558 wealth management products with high non-standard asset proportions, including many newly issued products, which have become the focus of market attention.

A typical example is Pudong Development Bank Wealth Management’s newly issued product, “Pudong Wealth Management Yuefengli Growth 301,” which has a fundraising scale of 238 million yuan, with two trust loans totaling 107 million yuan, resulting in an estimated non-standard proportion of about 45%. The key driver behind this is the higher yield of non-standard assets. The two trust loans have annualized yields of 4.88% and 5.65%, respectively, significantly outperforming deposits and most standardized bonds of the same period, making them an important tool for wealth management companies to boost performance and attract investors.

Industry insiders say that while non-standard assets offer higher returns, they also come with drawbacks such as poor liquidity, low transparency of underlying assets, and hidden credit risks. Over-concentration in a single product can amplify net asset value fluctuations. If the underlying assets default, investors’ returns could be severely impacted, potentially leading to concentrated redemptions. Wealth management firms need to strengthen risk control on the product side, balance returns and risks, and avoid reckless pursuit of high yields.