China’s WMP Sector Shows Renewed Promise amid Rapid Change
Many investors told Caijing reporters that the net values of bond funds and wealth management products (WMPs) they hold have fallen recently. They have been suffering from small or big economic setbacks every day. Some investors said they are considering redeeming their funds and waiting for the market to improve before making new investment plans. Analysts pointed out that since late August, the bond market has experienced a rapid correction due to factors such as tighter funding and relaxed real estate control policies. Affected by this, WMP yields fluctuated, forcing many investors to redeem their funds.
At the end of 2022, with the tightening of liquidity and the adjustment of the bond market, a lot of WMPs fell below their net values. Since investors still hold expectations for guaranteed principals and returns, loss from WMPs will have a greater impact on investors’ sentiment which may in turn trigger more redemptions. Industry insiders believe that as bond market yields stabilize, WMP market is expected to rebound.
