Over 1,700 Bank Wealth Management Products Below Par, Break-Even Rate Exceeds 2.5% as Fundraising Failures
As of July 24, over 1,700 bank wealth management products had net values below 1 yuan, with a break-even ratio exceeding 2.5%. The main source is R2-rated fixed-income-plus products, with some showing widening losses and one-month annualized yields as low as -5.86%. The break-even rate rose temporarily in June due to seasonal factors. Fundraising failures have increased, with over a dozen products from CITIC, Everbright, Bohai, and Huishang failing to meet minimum subscriptions. Since 2026, fixed-income-plus product assets have surpassed 8 trillion yuan, with average equity allocation of 5% and some equity products investing over 80% in stocks.
As of July 24, the number of wealth management products with net value below 1 yuan had exceeded 1,700, with a break-even ratio of over 2.5%. The main source of break-even products was R2-rated fixed-income-plus products. Some products have shown widening losses over the past six months, three months, and one month, with the one-month annualized yield as low as -5.86%.