[amourdesrondes 2023] New products help to stabilize net worth fluctuations

Bank asset management funds' net purchases of cash bonds amounted to 10.1 billion yuan, the first net purchases of cash bonds by bank asset management funds since the "purchase wave" in November last year. Yan Yuwei told reporters.

The 'repurchase wave' that shook the bond market in November last year caused a great controversy in the market. The industry believes that its influence has not completely disappeared yet. Frustrated investors bailed out and institutions were forced to sell their bonds. The bond market continued to decline and formed a negative cycle.

From November 1 last year to February 3 this year, the CSI Allbond index (net price) plunged 1.38%. According to Puyi Standard statistics, as of February 3, the scale of bank wealth management deposits in the overall market decreased by more than 4 trillion yuan compared to the end of June last year.

The formation of the 'repurchase wave' is related not only to short-term rapid fluctuations in the bond market, but also to the large amount of bank asset management funds that are mainly invested in the bond market. According to data released by the Banking Asset Registration and Custody Center, by the end of June 2022, the scale of banking asset management products reached RMB 29.15 trillion, of which 53.26% of investment assets were debt securities and interest-bearing bonds. Based on this, changes in financial management liabilities and assets of banks affect the bond market.

The net purchases per share mentioned above are driven by further changes in the bank's assets and liabilities under Treasury Management. Yang Yuwei said that after the net increase in bank bond assets, the repurchase pressure of bank asset management will continue to decrease, and the size of bank asset management will also decrease. During the 'repurchase wave' in November last year, bank asset management funds mainly reduced mid- to long-term credit bond stocks. , but the magnitude of the reduction is gradually decreasing. In order to shorten the period of using the asset management fund to respond to potential risks in the bond market, the scope of credit bond holdings of less than one year has been greatly expanded.