Multiple bank wealth management subsidiaries have lowered product fees, with some products achieving "zero fees"
2024-10-25
On October 24th, CMB Wealth Management released a rate discount announcement, reducing fixed management fees and sales rates for some products. According to incomplete statistics, since October, several wealth management subsidiaries such as Minsheng Wealth Management, Huaxia Wealth Management, and Huihua Wealth Management have lowered some product sales and management fees. After adjustment, the management fee rate of multiple wealth management products has been reduced to 0. On October 24th, multiple companies lowered their product fees. CMB Wealth Management announced that it would offer phased rate discounts on the fixed income investment plans of Zhaorui Wentai, which closed on October 28th, and Zhaorui Tianli, which held on October 1st for 7 days. The fixed investment management fee would be reduced from 0.15% (annualized) to 0.05% (annualized). On October 23rd, Minsheng Wealth Management announced a rate discount for the "Fuzhu Fixed Income Anxin Closed No. 68" wealth management product. From October 30, 2024 to January 18, 2027, the fixed management fee rate for this product will be reduced from 0.5% to 0.1%, and the sales fee rates for A, S, and Q shares will be reduced from 0.5% to 0.25%, 0.2%, and 0.15%, respectively. Since October 16th, Minsheng Wealth Management has released dozens of rate discount announcements, involving multiple fee items such as fixed management fees, sales fees, and custody fees. Some products have been discounted with rates as low as 0.01%. From the perspective of discount rates, there have been cases where the fee rates for wealth management products have been reduced to 0. Huihua Wealth Management announced that from October 22, 2024 to August 6, 2025, the fixed management fee for "Huihua Wealth Management - Wealth Lighthouse Stable Enjoyment Closed End Fixed Income Wealth Management Products 2419" will be reduced from 0.1% to 0. Huaxia Wealth Management also announced on October 17th that it plans to offer phased rate discounts for the "Huaxia Wealth Management Yueyi Two Year Wealth Management Product No. 20", reducing the fixed management rate to 0. The discount period will be from October 25th, 2024 (inclusive) to December 31st, 2024 (inclusive). Regarding the recent phenomenon of several bank wealth management subsidiaries lowering product fees, Chen Li, Chief Economist and Director of the Research Institute of Chuancai Securities, told reporters that the reason for these wealth management products lowering fees is twofold: on the one hand, to improve the market competitiveness of their own products by lowering fees; On the other hand, it is also in response to the reduction of fees and benefits, reflecting the direction of inclusive finance. Furthermore, the reduction in fees reflects the confidence of the wealth management subsidiary in its investment capabilities and market development. The response strategy behind reducing fees is the impact of lowering fees on bank wealth management subsidiaries and the wealth management market. Du Yang, a researcher at the Bank of China Research Institute, told reporters that reducing fees is of great significance to the bank wealth management market. Firstly, reducing fees will make wealth management products more competitive, help attract more investors to participate, and solidify the foundation for the long-term stable development of the wealth management industry. Secondly, in the context of reduced rates, wealth management subsidiaries need to enhance their competitiveness through product innovation and improving service quality, in order to improve the quality and efficiency of industry development. From the perspective of future trends, Mingming, Chief Economist of CITIC Securities, stated in an interview with reporters that considering the overall low level of bank wealth management product fees, there is limited room for further reduction in the future. Meanwhile, some industry insiders have suggested that relying solely on fee reductions is not a long-term solution. Du Yang stated that in the long run, investment research capability is the core competitiveness of wealth management subsidiaries. Wealth management subsidiaries need to continuously improve their investment research and management capabilities to provide high-quality investment products and services, attract and retain customers. In the obvious view, wealth management subsidiaries still need to continuously improve their product lines according to regulatory policies and asset management development trends, focus on customers, allocate assets based on the characteristics of bank wealth management customers, attach importance to internal management, improve operational efficiency, and achieve the effect of cost reduction and efficiency improvement. (New Society)
Edit：Yao jue Responsible editor：Xie Tunan
Source：Securities Daily
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