Poor performance, some Chinese banks’ wealth management products lose hundred yuan daily.

In recent times, the performance of China’s bank wealth management products has been disappointing, with some investors suffering daily losses of hundreds of yuan, and some even losing their principal. However, as of now, there has not been a large-scale redemption situation.

According to a report from the “Xiaoxiang Morning News” on March 4, Ms. Liu from Changsha City, Hunan Province, bought several lower-risk bank wealth management products before the Chinese New Year. In early March, she found that her wealth management products were losing nearly a hundred yuan per day. One of the closed-term wealth management products for 9 months used to earn around 20 yuan per day in early February, but by late February, it had been incurring losses every week.

Several netizens have posted screenshots of the net asset value of the wealth management products they purchased recently online. The chart shows significant fluctuations in the net asset value over the past month, resembling a parabola, especially since mid-February, showing a clear downward trend.

A netizen from Shanghai shared a screenshot showing that on February 24, their wealth management account had a profit of -426.34 yuan, claiming to be losing 300 to 400 yuan every day recently. Another investor from Hangzhou lamented, “How come buying wealth management products is like trading stocks? I’ve even lost my principal!”

It is reported that statistics show that since February, out of 3300 medium to long-term pure bond fund products in the market, 2800 products have shown negative returns within the year, accounting for 84.85%. Out of 941 short-term pure bond funds in the market, 634 products have shown negative returns within the year, accounting for 67.38%. Some bond funds have given back the profits of the past six months in just one week. For instance, the Huatai-Fortis Secure Hong Bond Fund, which has been held for 6 months, dropped by 1.4% from February 17 to 24, while the cumulative increase in the past six months (from August 16, 2024 to February 16, 2025) was only 0.6%.

Historically, bank wealth management products have maintained a performance of “stable low volatility.” The current decline in returns is attributed to recent weakening in the bond market. On one hand, the funding situation is tightening further, with overall fund allocation being relatively tight, leading to rising government bond yields and continuous declines in bond prices. On the other hand, the phenomenon of a “teeter-totter effect” between stocks and bonds is becoming apparent, with some investors adjusting the proportion of major asset allocation by converting some bond holdings into equity assets. This fund migration could also lead to a temporary period of “bleeding” in the bond market, manifesting a certain “teeter-totter effect” between stocks and bonds.

Although there hasn’t been a situation of bond redemption yet, Ms. Liu mentioned, “I am not planning to pay attention to the returns of wealth management products in the near future.”

Regarding the future trend of bank wealth management products, reports indicate that since the beginning of this year, several bank wealth management subsidiaries have lowered the performance benchmarks of some wealth management products. This includes products from Industrial Bank Wealth Management, Huaxia Wealth Management, and Minsheng Wealth Management, with some products seeing a decrease of over 100 basis points. There has also been a widespread occurrence of new wealth management products having a performance benchmark lower than 2%, reflecting a potential decrease in expected returns.