Interface journalists| Han Hangkong
Recently, several bank wealth management companies announced the early termination of some of their wealth management products.
According to incomplete statistics of interface journalists, more than 20 products have been terminated in advance in June, and many products will be terminated in the next week to several weeks. The issuer covers various financial subsidiaries.
Among them, there is no lack of newly established financial products. Huaxia Wealth Management announced that it would terminate its financial products "Huaxia Wealth Management Cash Management No. 92" (hereinafter referred to as "Cash Management No. 92") and "Huaxia Wealth Management Cash Management No. 93" (hereinafter referred to as "Cash Management No. 93") in advance. According to the public information of the products, both products were established in April this year. Just in the past May, the two products also released a preferential rate announcement, adjusting the fixed management rate to 0.15% per year.
Huaxia Financial didn't explain the specific reasons for early termination. The interface news reporter found more than one reason for the recent early termination of financial products.
There are many reasons for early termination, and poor performance and small scale products bear the brunt
Jiang Ling, a researcher of Puyi Standard To the interface journalists, the early termination is mostly due to the following two reasons. On the one hand, some bank financial institutions design targeted profit stop products, and terminate the products in advance after reaching the target profit stop yield.
For example, the original expected maturity date of the enhanced fixed income financial management plan of CMB Wealth Management, Zhaorui Target, is May 14, 2025, because Since its establishment, the annualized rate of return has been 4.84%, 3.45% (annualized) higher than its profit stop target return, so it will terminate early on May 29, 2024.
"On the other hand, under the influence of recent bond market fluctuations, the performance of some products deviated from the expected earnings. In order to protect the interests of investors, bank financial institutions terminated the financial products with small subscription scale, short operation time and limited performance". Jiang Ling said.
Recently, China Post Wealth Management announced that it would terminate its "China Post Wealth Management Postbank Caizhi Hongyun Customized No.6 (Shengding Edition) RMB Wealth Management Product" in advance. As for the reason for termination, China Post Wealth Management said that "the current market interest rate has dropped significantly, affecting the future operation of the product, in order to protect the interests of investors when the actual performance of the current product reaches the performance benchmark".
Zhou Yiqin, the founder of Guantiao Consulting and a senior financial regulatory policy expert, told reporters on the interface that large fluctuations in market returns, risks in investment targets or other reasons would affect the investment returns that can be realized by financial products. Some products are affected by the market, and their net worth fluctuates more. A few products with poor performance shrink in size due to redemption and other factors.
"At this time, the manager measured that, rather than wait for the net value of the product to further withdraw, it would be better to terminate the wealth management product in advance, help investors stop losses in time, avoid further losses, which is conducive to protecting the rights and interests of investors. The manager can also save energy to create other competitive and excellent products, choose other stable alternative products for investors, and create a more long-term stable investment Return on capital. " Zhou Yiqin pointed out that.
Financial products terminated in advance are often small in scale, such as Huaxia financial products mentioned above Cash management No. 93, with a product scale of only 350000 yuan, is at a low level among the cash management products issued by Huaxia Financial Management.
"If the amount of the product is too low, the manager will get very little income from it, so that it cannot cover the operating costs. In addition, if the amount of the product is too low, some assets cannot be traded. For example, the bond market is a wholesale market, and the transaction amount is often tens of millions or even hundreds of millions of yuan. If the capital of a single financial product is too small, bond trading will be very troublesome." Zhou Yiqin told reporters on the interface.
In addition to the above situations, the early termination of some recent financial products is also related to the invested assets. According to the announcement of Minsheng Financial Management, the reason for the early termination of Minsheng Financial Management Yuzhu fixed income two year closed 150 financial product is "due to the early termination of the assets invested in this product".
The product description shows that this product is a private financing product, which was established on September 22, 2023, with a product scale of 506 million yuan. The third quarter report of 2023, the annual report of 2023 and the first quarter report of 2024 show that this product is mainly invested in "T8715 micro loan trust investment and wealth management project", and the three reports show that this asset accounts for more than 98% of the total assets.
Early exit is normal, and cashing is not a big problem
According to the statistics of Puyi Standard, as of May 31, there were 958 net worth wealth management products that had been terminated earlier this year, an increase of 117, or 13.91 percentage points, year on year.
Puyi Standard said that with the normalization of the financial management market, coupled with the operation of the product itself and other reasons, the early "exit" of financial management products is a normal phenomenon, which conforms to the laws of market economy.
This number is roughly the same as last year. According to multiple media reports, more than 2000 products will be terminated in advance in 2023. "Under the new market pattern of survival of the fittest, early termination of financial products has become increasingly normal, but compared with the large-scale financial market, the proportion of products terminated early is still in a reasonable range." Wang Jie, a researcher of Puyi Standard, said.
How to calculate the product income of early termination? A financial manager of a state-owned bank said to the reporter on the interface: "Don't worry about the security of funds. It is mainly the announcement. The general income is calculated according to the actual holding days of the financial product. Specifically, from the holding date to the early termination date, see the net value of the product on the termination date".
According to most announcements of early termination of products, the funds will be transferred to the investor's account within two to three working days after the termination of product confirmation. The interface reporter found that the financial products that have been terminated in advance will release the termination and liquidation announcement after the completion of the fund cashing to inform investors of the specific information of the products.
As for other impacts of early redemption of products on investors, Huang Shihui, a researcher of Puyi Standards, said that on the one hand, it may mean that investors cannot obtain expected returns, and it may also reduce the degree of capital loss caused by poor performance of financial products; On the other hand, if the investor does not arrange other financial management plans in advance, the returned principal and income may be idle in the account and cannot generate income.
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