In recent years, the economic landscape has witnessed a significant shift, particularly with central banks around the globe adjusting their policy rates in response to fluctuating market conditionsThese changes have resulted in a steady decline in bond yields, with the 10-year government bond yield hovering around 1.62%—a stark reflection of the current state of the financial marketsAs a consequence, financial institutions and wealth management companies are grappling with numerous challenges as they prepare for 2025, including intensified competition for mid-yield assets, stringent controls on valuation smoothing techniques, and pressing demands to reduce product fees and performance benchmarks.

As industry experts assert, the future of wealth management will increasingly depend on the ability to innovate in strategy development and asset allocationTo meet the dual objectives of customer investment returns and net asset stability, wealth management firms are encouraged to diversify their investment offerings into various categories, including U.S

equities, U.Sbonds, and commodities such as goldRecently, several management firms have begun to implement new strategies to meet these challenges head-on, indicating a dynamic shift in the industry’s approach to investment management.

One of the most noteworthy developments has been the introduction of a new mode of investment in exchange-listed derivatives, which has allowed bank wealth management products to participate actively in this spaceOn December 24, 2024, Xinyin Wealth Management successfully executed the industry's first direct investment in exchange-traded fund (ETF) options through its product offerings on the Shenzhen and Shanghai stock exchangesThis initiative marks a significant milestone in establishing an innovative investment framework for wealth management.

Xinyin Wealth Management has emphasized the growing number of investors participating in ETF options trading in recent years, a trend fueled by an increasingly sophisticated market environment

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The unique functions of ETF options—ranging from risk mitigation to enhancing returns—have enriched investment strategies in a substantial and multifaceted mannerProfessional investors now have the tools at their disposal to respond flexibly to market volatility, optimize their asset allocations, and achieve stable appreciation of their investments.

It is essential for companies engaging in direct investment in ETF options to ensure they adhere to necessary investor suitability requirementsThey must refine their processes involving research, trading, risk management, and settlement related to ETF optionsIndustry insiders note that the direct investment in ETF options represents a proactive exploration by wealth management firms to broaden their asset allocation channels and diversify their investment strategies, paving the way for increased involvement of long-term funds like bank wealth management in capital markets.

Simultaneously, banks are expanding their offerings in equity investments through rights share projects

According to recent announcements from Xinyin Wealth Management, they have utilized collaborative efforts with branches of Xinyi Bank to launch multiple rights share initiatives focusing on “specialized, refined, unique, and innovative” enterprises in high-tech sectors such as biotechnology, semiconductors, and advanced manufacturing.

The concept of rights shares refers to a contractual choice granted to investors, enabling them to purchase a specified number of shares in a target company at a predetermined price during a set timeframeThis financial instrument creates opportunities for firms to attract equity investment while providing investors with potential upside benefits.

Notably, Xinyin is not the only firm venturing into equity investment with rights share options; its peers are also making strides in this directionAs the first bank wealth management company to offer rights share business, Everbright Wealth Management registered its inaugural rights share project in the Beijing Equity Exchange Center in August 2023. Reports indicate that as of the end of last year, Everbright had signed cooperation agreements for rights shares with 229 specially recognized enterprises.

Furthermore, the launch of a pioneering national rights share strategy fund—established in collaboration with Beijing Equity Exchange Center and Zhongguancun Capital—signals a further commitment to developing strategic affinity for rights shares within the wealth management community

Officially launched on December 29, 2024, this fund, with an initial scale of 1 billion yuan, will focus on ten high-precision industrial sectors, catering to startups, growth-stage companies, and matured enterprises.

The subsequent implementation of these rights share projects signifies a transition in bank wealth management toward a more investment-logic-based approach, positioning firms to become true "patient capital." This reflects a broader trend whereby wealth management firms are beginning to hone their focus on long-term, strategic investments in line with evolving market dynamics.

Multiple professionals within the bank wealth management sector have expressed optimism about the equity market's outlook for 2025, anticipating that supportive policies and improved profitability will gradually warm up an otherwise tepid marketThey emphasize the importance for wealth management companies to remain proactive, seizing sector-specific and trend-driven investment opportunities, and enhancing their research capabilities in equity investments for future growth.