Chinese wealth management companies are making significant progress in meeting regulatory valuation reform targets, with many institutions reporting they have completed 50% of required adjustments ahead of the late-June assessment deadline. The reforms primarily address price valuation methodologies, particularly for bond and non-standard assets, which is expected to increase net value volatility for wealth management products (WMPs) moving forward.
To adapt, firms are rebalancing portfolios—shortening bond durations to mitigate interest rate risks and accelerating development of multi-asset strategies (e.g., “fixed income+” products). Simultaneously, wealth managers are prioritizing investment research capabilities, as differentiated asset selection becomes critical to managing post-reform performance.
The changes are likely to drive industry consolidation, favoring larger players with robust risk-management systems. While short-term product volatility may rise, the reforms aim to enhance transparency and align practices with global asset valuation standards.
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