Recently, a number of banks and their financial management subsidiaries have reduced the relevant rates of financial products to varying degrees. The types of reduction are mainly fixed management fees and sales service fees, but also involve custody fees and redemption fees. Some rates have even been adjusted to 0. Insiders interviewed by the reporter of the economic information daily said that under the background of slow product circulation and poor income, the reduction of relevant rates of financial products by multiple institutions is intended to grab customers, which is a means of competition. At the same time, reducing product rates is also a way to reduce fees and make profits, which can better reflect the direction of Inclusive Finance. Experts also said that investment and financial products should comprehensively consider the overall situation of the product and the actual needs of individuals. It is not recommended to take the rate as the key factor in the selection. Bank financial rate war started The reporter found that recently, a number of banks and their financial subsidiaries reduced the relevant rates of financial products, and the reduction items were mainly fixed management fees and sales service fees. The lowered financial institutions include large state-owned banks, joint-stock banks and their financial management subsidiaries, urban commercial banks and other types. In terms of fixed management fee, Bank of Nanjing subsidiary bank of China announced that since 2022, preferential rates have been given to some financial products. Taking the "Nanyin financial management Zhulianbihe Zhiyuan balanced ESG theme (minimum holding 364 days)" as an example, the fixed management fee was reduced from 0.8% per year to 0.4% per year from February 7 to June 30. In terms of sales service fee, BOC wealth management announced that from March 2, 2022 to March 28, 2023, the product rate of "BOC wealth management 'stable wealth' fixed income enhancement (closed) phase 009, 2022" was preferential, and the sales service fee of class a share was reduced from 0.30% (annualized) to 0.15% (annualized); The sales service fee of class C share is reduced from 0.40% (annualized) to 0.10% (annualized). In addition to the fixed management fee and sales service fee, the reduction of product rate also involves redemption fee, etc. Everbright financial, a subsidiary of Everbright Bank, carried out the redemption fee preferential activity of sunshine gold No. 2 (eb1888) financial products from February 14 (inclusive) to December 20 (inclusive). During the inactive period, the holding period is less than 360 days, and the redemption rate is 0.50%; During the event, if the holding period is less than 360 days, the redemption rate will be reduced to 0.25%. It is worth noting that the rate of some products has also been adjusted to 0. China Merchants Bank recently announced that it lowered the product rates of some bank financial management subsidiaries sold on a commission basis, involving the fixed management fees, sales service fees and custody fees of more than 10 products of many companies such as China Merchants Bank financial management, xingyin financial management and Everbright financial management, and some fixed management fee rates fell to 0. Huaxia Bank announced that from January 25, it will adjust the sales handling fee rate of a share and B share of Huaxia financial cash management financial product No. 3, and adjust the sales handling fee of a share and B share to 0 from the previous 0.3% / year. Rizhao bank also announced that the bank plans to give phased concessions to the sales fee and management fee of the designated three financial products in the second investment cycle, and the sales rate and management rate after the discount are 0%. Reduce fees and make profits to seize the market What are the reasons behind the reduction of various rates of bank financial products? Dong ximiao, chief researcher of Zhaolian finance, said that there are many reasons for the recent rate adjustment of bank financial products. Last year, the existing balance of the bank financial management market was 29 trillion yuan, with a growth rate of about 12%. The scale is relatively large, the profitability is enhanced, and nearly trillion yuan of income is created for investors. It already has the foundation to reduce the rate. "In the context of increasing the reduction of fees and interests to the real economy and customers, reducing the product rate is also a way to reduce fees and interests. The bank financial management market is relatively stable compared with the stock market, which is an important choice for people to invest in financial management. After the reduction of fees, it can better reflect the direction of Inclusive Finance." Su Xiaorui, senior analyst of Analysys analysis financial industry, also said that with the establishment of bank financial management subsidiaries, the impact of new asset management regulations is deepening, and the supply side competition in the financial management market is intensifying. At the product issuance level, with the transformation of financial products to net worth, the issuance and survival scale of net worth products continue to rise, and the scale effect will also drive the rate downward to a certain extent. Industry insiders also believe that the rate reduction of banks also belongs to one of the ways of inter agency competition. Huang Shihui, a researcher at Puyi standard, said that since January this year, the A-share market has continued to fluctuate, the overall yield of main interest rate bonds between banks has declined slightly, and the yield of some bank financial products has also been affected. Due to the slowdown of product circulation and poor income, many financial management companies have reduced the management fee rate and sales rate of financial products. It is a means of inter agency competition. Dong ximiao said that from the perspective of banks and wealth management companies, reducing the rate can attract more customers, make small profits and sell more, so as to further expand the scale of bank wealth management. It is estimated that the scale of financial products will exceed 30 trillion yuan in 2022, and investors are expected to exceed 100 million. If the fee reduction brings about an increase in investors and the expansion of business scale, the income of financial management business may increase instead of decrease. Investors should make rational investment planning In the long run, what will be the trend of financial product rates? Huang Shihui said that it is normal for financial companies to attract or retain investors and seize the market scale by adjusting the rate. It is expected that this phenomenon will continue to expand in a short time, but from the perspective of normalization, low rate products will not last for a long time. Su Xiaorui also believes that the rate reduction seems to be a short-term trend. In the long run, with the stability of the macro environment and the gradual formation of the market pattern of net worth products, the rate is expected to stabilize. Dong ximiao believes that for some time, the rates of public funds and other products have been reduced to varying degrees. It is expected that there is room for further adjustment of the relevant rates of bank financial products to enhance their attractiveness to investors. However, different banks, financial companies and financial products will adopt different charging strategies, and the differences in charging methods and rates will further appear. Huang Shihui said that for investors, medium and short-term rate adjustment is conducive to reducing investors' investment costs, but investors also need to make rational investment planning. Dong ximiao reminded investors that there are many kinds of charges for bank financial products. In addition to management fees, there are subscription fees, subscription fees, redemption fees, etc. we should realize that the reduction of single fees does not mean no charges; The rate adjustment of some bank financial products has some preconditions, such as holding period, etc. Moreover, investment and financial products should comprehensively consider the overall situation of the product and the actual needs of individuals, and it is not recommended to take the rate as the key factor in the selection. (Xinhua News Agency)