The Zhitong Finance App learned that CICC released a research report saying that recently investors are paying more attention to the institutional behavioral characteristics of absolute income funds such as financial management, insurance, and fixed income +. The financial scale performance in the third quarter slightly exceeded expectations. Judging from the product structure, against the backdrop of bond market performance support and a slight easing of pressure to smooth valuation and rectification, low-wave fixed income products continued to grow steadily, and the scale of mixed stock wealth management products increased slightly. The positions of public funds in the allocation of various types of assets have reached a new high, and their positions in bonds and deposits have remained stable. The bank expects financial institutions to show strong procyclical attributes, that is, they tend to seize right-side opportunities during periods of rising stock markets, but there may be limited room to increase positions in a declining and volatile environment.
CICC's main views are as follows:
Yindeng Center released the third quarter financial management report. At the same time, the equity market has recently come under pressure. Investors are paying more attention to the institutional behavior characteristics of absolute income funds such as financial management, insurance, and fixed income +. The bank believes that financial management has strong position control and stop-loss requirements in the context of falling assets; at this stage, the financial debt maturity structure is still short, and the risk appetite of financial management customers is still low. The bank has observed that financial institutions' exposure to stocks and equity funds has generally shown a downward trend since September. The bank anticipates that short-term pure fixed income products may still be the main force in wealth management growth; although leading financial institutions are actively expanding their multi-asset layout, product growth needs to be supported by the market environment.
Financial scale performance in the third quarter slightly exceeded expectations. The financial management scale at the end of 3Q26 was 35.4 trillion yuan. The cumulative increase in the third quarter was 1.7 trillion yuan, and the month-on-month growth rate reached 5.1%, which was stronger than the seasonal characteristics of previous years. The bank believes that deposit moving and declining demand for bank deposits at the end of the quarter will drive a high increase in the scale of financial management. Looking at the product structure, against the backdrop of bond market performance support and a slight easing of pressure to smooth valuation rectification, low-wave fixed income products continued to grow steadily, and the scale of mixed stock wealth management products increased slightly: at the end of 3Q26, the scale of fixed income, cash, hybrid, and equity products was 27.5, 6.7, 1.1, and 0.1 trillion yuan, respectively, accounting for 77.7%, 18.9%, 3.0%, and 0.3%.
Major asset allocation: Public fund positions reached a new high, and bond and deposit positions remained stable. At the end of 3Q26, financial management allocated bonds and interbank deposits of 41.0%, 9.3%, and 28.2%, a decrease of 0.5 pct and an increase of 0.7 pct over the previous quarter; the net increase in financial management bonds in the third quarter was 0.42 trillion yuan, mainly corporate bonds and bank long-term bonds. Interbank deposit positions remained high at 28.2%, and positions rose to 30% in July-August. Furthermore, at the end of 3Q26, financial management's allocation of public fund positions reached a new high of 7.9%, and the allocation scale reached 2.96 trillion yuan. The bank expects to increase the distribution of pure debt fund products; the stock market declined during the same period, causing financial institutions to reduce allocations of stocks, hybrid, and fixed income+ funds in September-October.
Equity assets have been reduced, and we need to wait for opportunities on the right side. The bank estimates that at the end of 3Q26, Wealth Management held a total of 0.6 trillion yuan in stock assets (direct investment+indirect investment through public funds), accounting for 1.5% of total financial management assets, which is still at a low level. Wealth Management retracted in an environment where the stock market declined in March and July of this year, but fixed income + product issuance was strong this year, hedging the reduction in existing product positions to a certain extent. Looking ahead, the bank expects financial institutions to show strong procyclical attributes, that is, they tend to seize right-side opportunities during periods of rising stock markets, but there may be limited room to increase positions in a declining and volatile environment.
risk
The pressure for smooth valuation correction exceeded expectations, and large fluctuations in the bond market and stock market brought about net worth adjustments.