金融行业月报：理财新发收缩，公募存续扩张-240309-华泰证券-24页_711kb

Analysis and Summary of the Chinese Financial Sector Market Report (February 2024)

This report is issued by Huatai Securities Research, covering the performance and trends of the large asset management industry in February 2024, spanning areas such as bank wealth management, public fund management, trust, investment banking, insurance asset management, and other fields. The report highlights key data trends, opportunities, risks, and specific stock recommendations. Below is a detailed summary of the report content.

1. Bank Wealth Management

Key Highlights:

• In February 2024, the total number of bank wealth management products issued nationwide was 3,097, a month-over-month decline[^1], reflecting temporary market adjustments.
• The scale of non-guaranteed wealth management products continued to expand, reaching approximately 27.2 trillion CNY, with a 3.8% month-over-month increase[^2].
• Non-guaranteed returns faced pressure, with the median asset management yield benchmark falling by approximately 6 basis points to 3.27% as of February 2024.
• Internet-based money funds like Yu'e Bao saw a slight decrease in seven-day yields.

Market Trends:

• Products with longer terms and higher risk levels accounted for a growing proportion of the market.
• Despite investment pressures, retail banks such as China Merchants Bank are expected to maintain stable growth in their wealth management sectors.

2. Public Fund Management

• Fund assets continued to grow in February, with total assets of 2.74 trillion CNY recorded, a slight month-over-month increase.
• The public fund market saw a decline in newly issued fund shares by over 36%, amid shifted investment preferences.
• Equities and hybrid funds continued strong, with equity funds yielding significant returns driven by market optimism.
• The performance of different asset classes reflected varying investor risk appetites, with fixed-income funds maintaining relatively stable performance.

3. Brokerage Asset Management

• Brokerage asset management scale dropped over the last quarter, indicating slow GDP growth pressures.
• New product issuance significantly decreased month-over-month, with most new products concentrated in bonds and equities reflecting a cautious investor stance.

4. Insurance Asset Management

• As of December 2023, the total assets under insurance management reached around 27.7 trillion CNY, up against a backdrop of higher investment limits.
• Bank deposits and bonds represented roughly 7%–45% and 98%–46.4% of overall assets, respectively.
• Expected to continue exploring diversified asset allocation strategies to mitigate risks.

5. Trust Industry

• New trust products launched in February recorded a 38% month-over-month decrease, possibly due to regulatory shifts.
• Growth in non-financial trust products slowed, highlighting increased competition.
• The role of trust as an investment channel in the large asset management sector remains limited.

6. Investment Banking Activities

• Investment banking reported an uptick in deals during the period, driven by restructuring and M&A activity.
• Opportunities lie in sectors expected to benefit from economic transformation, but risks involving market volatility are high.

7. Key Recommendations and Risks

• Analyst Recommendations: Huatai Securities recommended China Merchants Bank (A+H shares), Ping An Bank, Guangfa Securities, and Eastern Securities, highlighting their solid fundamentals and growth potential.
• Risk Factors: The report emphasized possible economic recovery pressure and shifts in asset quality.

Conclusion

Chinese asset management experienced mixed results in February 2024, with banking and public fund sectors leading growth amid cautious investor behavior in equities. The performance of brokerage and trust businesses underscores ongoing regulatory adjustments. Expanding these findings to higher-risk asset investments appears feasible only after tracking economic trends in the upcoming months.

[^1]: Data compiled from Wind database and Huatai Research.
[^2]: Figures from public fund bulletins and asset management reports.