Recently, several bank wealth management subsidiaries announced that they will purchase their stock based wealth management products with their own funds. In the asset management market, it is common for investors to purchase wealth management products, and is the self purchase model of bank wealth management subsidiaries a business innovation or a marketing gimmick? Buying one's own wealth management products out of one's own pocket is not limited to bank wealth management. Since the beginning of this year, multiple fund companies have used their inherent funds to purchase their own funds, and these transaction volumes of hundreds of millions of yuan are enough to earn enough attention. In addition, the adoption of repurchase plans by listed companies and shareholders to increase their own shares has also attracted attention from all parties in launching a protective mode. From this perspective, whether it is bank wealth management, funds, stocks or other products that institutions invest in and purchase, the additional effects brought by self purchase often outweigh the products themselves. From the perspective of the phenomenon of self purchase by bank wealth management subsidiaries, the most direct effect is to release positive signals to the market, in addition to being conducive to expanding the scale of wealth management. Self purchased wealth management products can boost investor confidence. The self purchase of bank wealth management subsidiaries mostly occurs during periods of volatility or downturn in the wealth management market. The self purchase of wealth management products by bank wealth management subsidiaries helps to stabilize product liquidity and optimize the performance of equity net worth; On the other hand, the value conveyed is to enhance the market competitiveness of one's own financial products, and to boost the allocation of medium - and long-term assets for investors. Last year's two rounds of "net breaking" had an impact on the bank's wealth management market, triggering large-scale redemption of wealth management products. Under the influence of the "scar effect", many investors still have a strong wait-and-see attitude towards equity wealth management products, and their stereotypes have not changed. At present, the bond market is recovering with little volatility, and the attractiveness of low-risk fixed income wealth management products has increased after market recovery. The performance report of the bank's wealth management market also shows that the overall returns of wealth management products are stable. In this context, many institutions have started self purchasing models, aiming to help investors re understand the investment value of equity wealth management products and seize new investment opportunities. It is worth mentioning that this round of self purchase also adds the benefits of fee reduction and profit sharing, allowing investors to see "real gold and silver". Financial management fees have been criticized by many investors, and coupled with market fluctuations last year, many financial products have broken the net but still need to pay management fees. Recently, many bank wealth management subsidiaries have made it clear that they will not charge management fees for their products that exceed their net value. From the perspective of purchasing wealth management products, bundling product returns with rates and breaking the default management fee model of existing asset management products is equivalent to benefiting investors and enhancing the attractiveness of wealth management products. Self purchasing wealth management products undoubtedly help stabilize investor expectations. As the yield of wealth management products rebounds and increases, it is not ruled out that some products may experience a significant increase in sales. Consumers should have a rational view of the phenomenon of self purchase, as there are also risks associated with self purchase. The financial market is constantly changing, and with the gradual withdrawal of guaranteed returns financial products from the market, fluctuations in the returns of financial products will become the norm. For bank wealth management subsidiaries, it is necessary to break the inherent fee model, focus on improving investment and research capabilities, continuously enrich the wealth management product system, make up for the shortcomings in channel operation and maintenance, and create conditions for investors to obtain stable returns. (Lai Xin She)
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：economic daily
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