785 bank wealth management products terminated early this year

　　Data shows that from the beginning of 2018 to October 20, 2020, a total of 1,618 bank wealth management products terminated early. Among them, in 2020 alone, there will be 785 products terminated early, involving multiple commercial banks.

The industry believes that there are two main reasons for banks to terminate some wealth management products early. One is to comply with the requirements of the new asset management regulations, and the other is due to the pressure of capital costs.

　　Take a product of ICBC as an example. On July 29, the 2018-8 issue of "An Xiang Changying" ICBC Wealth Customer Exclusive Wealth Management Product was terminated early.

This product was released in March 2018 with a term of up to 5 years. The original expiration date was March 8, 2023. However, ICBC issued an early termination announcement, and the product expiration date was advanced to July 29, 2020. The period has changed from 1829 days to 877 days.

It is worth noting that the annualized rate of return of this product has been as high as 6.1% since its establishment, but now many financial products have a rate of return of less than 4%.

It is understood that the wealth management products that have been terminated early this year are the same as this product, and the rate of return is much higher than the current market average.

　　It is reported that in April 2018, the Central Bank issued the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions", which is the new asset management regulations.

Among them, it is clearly required that bank financial management must break the rigid payment, break the multi-level nesting and prohibited fund pool model, and realize the transformation of net worth, and the capital preservation type and other illegal financial products must be withdrawn.

　　The relevant person in charge of ICBC previously stated that since the release of the new asset management regulations, the bank has promoted the implementation of the rectification of wealth management business operations.

The early termination of some products that do not meet the requirements of the new regulations and are difficult to rectify is also part of this work.

　　Since the beginning of this year, banks have generally begun to speed up the withdrawal of non-net wealth management products.

As of the end of June 2020, the existing scale of net-worth banking wealth management products was approximately 13.24 trillion yuan, a year-on-year increase of 67%, accounting for 53.82% of the remaining balance of all wealth management products, and more than half of the progress of the net-value transformation of bank wealth management products.

　　In addition to the requirements of the new asset management regulations, the cost of capital is also an important factor considered by banks.

Puyi Standards researcher Yu Kang pointed out that the existing old products are priced higher, and most of these products still have the phenomenon of "rigid redemption", while the current market interest rate remains at a low level, the income of new investment products declines, and the cost and income are likely to be reversed. phenomenon.

In consideration of capital cost control, some banks have adopted a plan to terminate the operation of high-yield products in due course.

　　Regarding whether the bank’s unilateral early termination of wealth management products is legal and compliant, industry insiders said that it depends on whether there is an agreement on the early termination of the product in the wealth management product manual.

For example, ICBC’s above-mentioned product stipulates, “In order to protect the interests of customers, ICBC may terminate this product early in accordance with market changes. Customers shall not terminate this product early except in the case of early redemption as stipulated in Article 7 of this manual.” In fact, most wealth management products issued by banks have similar terms.

　　Text/Reporter Cheng Jie