Since the beginning of the year, there have been at least 40 failed wealth management product launches in the banking industry on the mainland, including state-owned major banks. This situation is highly unusual, and it signals a concerning trend. Additionally, there has been a decrease in the number of newly launched wealth management products compared to previous periods. The industry attributes this trend to the deteriorating market environment and increasing investor concerns.
According to incomplete data from the FAXUN Wealth Management Network, from the beginning of the year to the present in 2026, companies like Huaxia Wealth Management, Puyin Wealth Management, and Huihua Wealth Management have collectively seen 40 failed wealth management product launches, all of which were fixed-income products. Most of these products were categorized as R2 (medium-low risk) or even R1 (low risk), with closed-end net value products attracting little attention.
An article in the Daily Economic News on Wednesday, March 25, highlighted that in 2025, the banking wealth management market expanded continuously. However, this year, many new wealth management products have failed due to not reaching their fundraising targets.
The Huaxia Times quoted Jiang Bin, head of wealth management at the FAXUN Financial Research Institute, stating that this phenomenon not only shattered the myth of invincible products during the rigid redemption era of the wealth management market but also reflected investors’ ongoing concerns about fluctuating net asset values.
Fixed-income wealth management products primarily invest in assets such as deposits and bonds, with at least 80% allocated to debt-based assets. These instruments offer relatively stable returns and lower risks.
Closed-end net value wealth management products are characterized by fixed, non-redeemable terms, with no guaranteed capital protection. Their returns fluctuate based on the performance of the investment market, and their net asset values are disclosed periodically.
Furthermore, this year has seen a monthly decrease of several hundred new bank wealth management product launches. Data from ZhongZheng Wealth Management shows that in January 2026, there were 2,969 new wealth management products launched, a decrease of 305 compared to the previous month. In February, 2,396 new products were launched, a decrease of 573 from the previous month.
The industry views the failure of 40 wealth management products, including those by major state-owned banks, as a rare occurrence. The primary reason behind this trend is the deteriorating market environment, which is exacerbating investor worries.
A senior analyst in the fixed-income industry in Shanghai mentioned that while failed bank wealth management product fundraising is not uncommon annually, the situation of dozens of products failing to meet targets in a single quarter – including products from major state-owned banks to rural commercial banks – is highly unusual. The analyst further connected these occurrences to heightened stock market volatility and declining bond market yields.
According to “Puyi Standard,” macro interest rate fluctuations and credit events have been the primary risks in the external market environment. Since 2025, the 10-year government bond yields have experienced three rounds of severe fluctuations. In this interest rate environment, the net asset management of fixed-income products faces significant challenges.
Reports from Corporate Magazine in the mainland have drawn attention to multiple incidents where listed companies faced losses due to wealth management product investments. For instance, Shengyuan Environmental incurred losses exceeding 80% from a subscribed private equity fund. Similarly, Zheng Coal Machine’s three billion yuan investment in wealth management products only yielded less than thirty million yuan in returns, while Yingluohua encountered delinquency issues with trust products.
At the end of 2025, several financial wealth management products in Zhejiang Financial Asset Exchange were overdue, involving a fund size exceeding 20 billion yuan and affecting nearly ten thousand individuals. Despite being associated with a state-owned background and holding an AA+ credit rating from the troubled enterprise, Xiangyuan Holdings, offering a low 4% yield on the wealth management product, failed to prevent the wealth management failure.
“Puyi Standard” also pointed out that several non-standard default incidents in urban investment platforms, while not directly related to wealth management assets, intensified investor concerns about credit bond allocations, significantly increasing the difficulty of fundraising for relevant debt-based products.
Recently, reports from the Industrial Digital Finance highlighted that this year, the core urban investment platform of Xi’an Xixian New Area – Shaanxi Xixian New Area Qinhan New City Development Construction Group Co.,Ltd., is facing a triple crisis of dishonesty, delinquency, and layoffs.
Within the first two months, the company saw an addition of five individuals to the discredited list, with a total amount involved of 231 million yuan. This regional state-owned enterprise with total assets exceeding 43 billion yuan faces comprehensive debt risks.
Established in 2007, “Puyi Standard” is a company focusing on financial technology and asset management services, providing comprehensive solutions including wealth management assessment, information, and asset management systems. Its core business covers bank wealth management, trust services, insurance asset management, and data accumulation.