The mainland’s bank wealth management returns continue to decline. In Beijing, an investor invested 100,000 yuan (RMB, same below) and after holding a wealth management product for about nine months, the face value return was only 30 yuan. At the same time, in July, a total of 4,253 wealth management products had a net asset value lower than 1 yuan, and 67 wealth management products had failed to issue within the year.
According to a report by “Zhongxin Jingwei” on August 7, last October, Yuan Qing (pseudonym) purchased the “Huihua Wealth Management 12-month Closed Product” for 100,000 yuan, with a performance benchmark listed on the purchase page ranging from an annualized 2.70% to 3.50%.
As of August 6, the product had not yet matured and Yuan Qing’s holding profit was only 30 yuan. The annualized return since the establishment of the product was 0.038%, and the annualized return for nearly a month was -4.05%.
Another investor mentioned that out of the 7 bank wealth management products they held, 2 had a negative annualized return in the past month, while the remaining 5 were only around 1%. There was also an investor who invested 30,000 yuan and incurred a loss of 17 yuan in two months, saying, “I only saw profit for 4 days in the whole month of July.”
The related news has sparked discussions among netizens. Some people said, “It’s fortunate not to incur losses upon maturity.” Others mentioned that as bank deposit interest rates continue to decrease, wealth management products may lead to losses, resulting in fewer stable investment channels available for ordinary families to choose from.
Financial data platform Pu Yi Standard Data shows that the average annualized return of wealth management products in the market in July for nearly a month was 0.30%, lower than June’s 1.71%. The average annualized return for nearly a year also decreased from 2.167% in June to 1.93% in July.
When calculated based on different amounts of the same product, in July, a total of 4,253 wealth management products had a net asset value lower than 1 yuan, indicating that for every 1 yuan investors put in, the corresponding face value was already below 1 yuan, termed as “broken net.” The broken net rate in July was 4.84%; whereas in June, there were 2,621, with a broken net rate of 3.03%.
A report released by the Bank Wealth Management Registration and Custody Center at the end of July showed that by the end of June, the total scale of mainland bank wealth management products was 33.66 trillion yuan, with 151 million investors holding wealth management products. However, the average annualized return rate for wealth management products in the first half of the year was 2.05%, lower than the 2.12% during the same period in 2025.
According to a report by “Southern Metropolis Daily,” the accumulated income of wealth management products in the first half of the year decreased by 21.66% year-on-year; among individual investors, conservative investors still accounted for the majority, but the proportions of conservative and aggressive investors had increased compared to the same period last year.
Incomplete statistics from Wind show that there were already 67 failed wealth management product issuances this year, meaning the products did not raise sufficient funds or meet the establishment conditions, an increase from 28 during the same period last year. Among these, since August, 4 products have failed to establish due to not reaching the minimum amount stated in the prospectus.
Difficulties in issuing wealth management products are not a recent phenomenon. “Daily Economic News” reported in March that many wealth management companies, including Huaxia Wealth Management, Puyin Wealth Management, and Zhaoyin Wealth Management, had products fail to issue due to not reaching the minimum funding amount. Statistics at that time showed that already 40 wealth management products had failed to issue within the year, mostly fixed-income products.
Previously, “Nandu Bay Finance and Society” reported that Wind data showed that more than 300 wealth management products had adjusted their performance benchmarks in May last year, involving multiple wealth management companies, with some products decreasing by over 100 basis points.
Chinese Postal Savings Bank researcher Lou Feipeng stated that the recent decline in the bond market has led to a decrease in the returns of wealth management products mainly invested in bonds; the stock market volatility has also affected wealth management products concurrently invested in stocks. Lou Feipeng also mentioned that the decrease in returns and the dropping of the net value of some products below 1 yuan have weakened investors’ subscription willingness.
Morgan Stanley’s Chief Financial Analyst in China, Xu Ran, stated in January this year to “First Financial” that a further decline in financial asset returns may compress residents’ interest income, affecting wealth accumulation and consumption intentions.