Recently, the annualized returns of many bank wealth management products have risen significantly. Is it about to warm up?

Indeed, I have recently reviewed the net value trends of many wealth management products and have noticed some new changes. Some products have seen annualized returns exceeding 10% in the past month, and some have even reached 18%. It should be noted that such a level of returns is truly surprising in the current market environment.

What does such market performance indicate? After a period of continuous downturn, is China's wealth management market about to "take off" again? How should we invest in wealth management in the future? Let's analyze this together today:

Since May, a large number of wealth management products have seen a sharp increase in net value returns, with many products showing very good net value trends. The annualized returns for the past month are mostly around 10%, and even the lower ones can reach over 3%. According to professional analysis, this situation is likely due to the recent bottoming out and rebound in the capital market. For example, the Shanghai Composite Index rebounded from a bottom of 3,000 points, driving a good wave of stocks, funds, and wealth management products.

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At the same time, due to the continuous interest rate cuts and reserve requirement ratio reductions by the central bank, liquidity has been relatively loose. Coupled with the continued downturn in the real estate market, this has brought ample funds to the bond market, resulting in a short-term bull market.

Will the net value of wealth management products continue to rise in the future?

Attentive friends may have noticed that the annualized returns exceeding 10% we mentioned earlier are preceded by a few words, which are "in the past month." This means that the high returns currently reflected do not represent the actual return level of the products themselves. They are merely a growth trend brought about by a small market trend in the recent month, which can be considered a temporary market condition.As for whether there will be continued growth in the future, this will have to be determined based on various market conditions ahead.

Firstly, the impact of the pandemic is far from over. Although the situation in Shanghai has just started to improve, many other regions across the country still face severe and complex challenges. No one can be certain where new cases might emerge tomorrow, so there is still some concern about the economic recovery. Although local government agencies are doing their best to stimulate the consumer market, investor confidence still needs to be strengthened. Therefore, the recent market trend may still carry the risk of a downturn.

Recently, can the general public consider investing in financial products?

As mentioned earlier, the recent market trend could be a short-lived one, and the future direction is truly hard to predict. When investing in long-term products, it is wise to be cautious. However, there is a category of products that has been performing well recently, which is "cash management money market funds."

Although these products are also value-based, they offer more flexible terms, allowing for buying and selling at any time. Those interested in investing might want to try such products, but it is also crucial to pay attention to risks. If market conditions change, it is advisable to exit promptly to protect our capital.

In summary, with the complex and ever-changing international situation and domestic economic pressures due to factors like the pandemic, the investment market has seen many changes. As the state and local governments introduce various stimulus policies, the investment market will become even more complex in the future. However, overall, it is expected to gradually improve. I hope everyone can maintain a clear mind and seize fleeting opportunities to achieve good investment returns.

How about your recent investment returns? Do you plan to purchase financial products soon?

We welcome everyone to leave comments and interact, let's discuss together.That concludes all the content for this episode. If you have any topics in finance and wealth management that you would like to learn more about, please feel free to leave me a message.