Since June, major Chinese wealth managers including Schroder Bank of Communications Wealth Management and Minsheng Wealth Management have reduced fees on select financial products. This move comes as financial institutions seek to enhance their market appeal following the latest round of deposit rate cuts initiated on May 20.
The fee reductions represent a strategic effort to attract investors in a lower interest rate environment. As banks lower deposit rates, wealth management products become relatively more attractive, prompting firms to adjust pricing to maintain competitiveness. Industry analysts note this trend particularly benefits fixed-income and mixed-asset products.
This development reflects the growing competition in China’s 30 trillion yuan wealth management market. Firms are balancing the need to maintain profitability while offering compelling returns to investors. The fee cuts may accelerate the shift from traditional deposits to professional wealth management solutions among Chinese retail investors.
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