Manage position size, set take-profit targets, and enhance yield structures. Financial institutions fit “Gold+” investments with shock absorbers.

● Our reporter Zhang Jialin

“Last year, ‘Gold+’ financial products were quite popular, and distribution channels also reflected demand. But now, each financial company is more cautious, mainly due to recent gold price trends,” a person from a city commercial bank’s wealth management company told China Securities Journal. Recently, sharp fluctuations in gold prices have impacted the net value performance of ‘Gold+’ financial products.

Some investors have reported that their ‘Gold+’ financial products have experienced returns being pulled back. Once shining brightly during the gold bull market, ‘Gold+’ financial products have suddenly lost their halo. Notably, financial institutions have not stopped launching new related financial products. Several wealth management officials stated that they have controlled positions through multi-asset strategies, making the net value fluctuations of ‘Gold+’ products manageable. Additionally, some products’ option structures also limit the impact of gold price volatility on returns.

Product returns under pressure

“Back then, I was recommended to buy a gold-themed financial product by my account manager, and I did make some profit last year, but since this year, returns have been pulled back quite a bit,” Xiao Li, an investor in Beijing, told reporters. She purchased a ‘Gold+’ financial product in 2025, whose net value has recently been declining consecutively. The ‘Gold+’ product she bought was established in April 2025, with a risk level of R3.

One of the highlights on the product page is ‘Diversified Gold Composite Strategy to Enhance Returns,’ which involves a multi-asset rotation based on gold arbitrage strategies, gold options strategies, and gold long strategies, flexibly investing in the gold market according to market conditions to boost returns. Since its inception, this product has an annualized return of 4.13%, with a one-month annualized return of -10.95%.

In March, gold prices fell sharply, and the performance of ‘Gold+’ financial products was also affected. According to data from Puyi Standard on April 1, the average annualized return of ‘Gold+’ products since March was about 0.61%, the year-to-date average annualized return was about 2.0%, and since 2025, the average annualized return was about 3.26%.

No halt in issuance

Industry insiders said that ‘Gold+’ financial products mainly fall into two categories: structured products and non-structured products. Non-structured products’ returns are more directly affected by gold prices, often holding assets like gold ETFs and gold stock ETFs. Structured products typically use options and other derivatives to indirectly hold gold assets. With reasonable position control, fixed-income core holdings’ coupons and other fixed returns can mitigate the impact of gold price declines on the product’s net value. Additionally, some products’ option structures also limit the influence of gold price fluctuations on returns.

Despite the significant correction in gold prices in March, wealth management firms have not stopped issuing ‘Gold+’ products. On April 1, a review of China Wealth Management Network showed that China Merchants Bank Wealth Management and China Everbright Wealth Management both launched new gold-themed products in March. Industry insiders said this reflects that wealth management institutions generally maintained a relatively stable supply of gold-themed products amid market volatility. For example, China Merchants Bank Wealth Management launched products like the Zhurei Focus Link to Gold No. 20 fixed-income plan and the Zhurei Focus Link Stable Progress Gold Shark Fin No. 22 fixed-income plan. China Everbright Wealth Management launched products such as Sunshine Qingrui Leap Enjoy 49th (automatic trigger strategy for gold) fixed income and Sunshine Qingrui Leap Enjoy 50th (automatic trigger strategy for gold) fixed income.

Diverse designs

“For wealth management firms, increasing the volume of gold-themed products is quite challenging; they are more like supplementary products. Usually, they are structured as ‘Fixed Income + Options,’” a senior investment manager from a joint-stock bank’s wealth management division told reporters. Using fixed-income assets as a foundation, then capturing market opportunities in equities and commodities with small positions to boost yields, is a popular approach in the industry.

When describing a gold-linked financial product, China Merchants Bank Wealth Management stated that the fixed-income portion adopts a prudent investment strategy. The derivatives part is designed with a reasonable product structure and issuance timing, considering the valuation and volatility of the underlying index, combined with clients’ risk tolerance and option valuation levels, aiming to achieve asset appreciation while controlling return volatility.

Puyi Standard researcher Cui Shengyue believes that ‘Fixed Income + Gold’ products show relatively stable net values and diverse structural designs. Some products include mechanisms like take-profit to help investors lock in gains and improve the holding experience. Additionally, by introducing structures like ‘Shark Fin Options’ and ‘Binary Options,’ wealth management firms have enriched the ways to generate returns and buffer risks. Furthermore, they are gradually incorporating tools like gold ETFs and gold stock ETFs for diversified asset allocation.