Yield on Chinese Bank Wealth Management Products Falls to New Low in Mid-March

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Yields on bank wealth management products (WMP’s) in China have continued to decline to unprecedented levels since the start ofMarch.

The week of 15 – 21 March saw the issuance of 2371 bank WMP’s, for an increase of 106 compared to the preceding week, while the average expected annualised yield was 4.30%, for a decline of 0.06 percentage points.

The average term for bank WMP’s that week was 190 days, for an increase of 15 days compared to the preceding week.

The week ending 21 March also saw the issuance of 142 structured deposits, for an increase of 11 compared to the preceding week. The average expected annualised yield was 4.16%, for a decline of 0.13 percentage points compared to the preceding week.

The week saw the release of 130 renminbi structured deposits with an average expected annualised yield of 4.29%, for an on-week decline of 0.09 percentage points.

Data from the Chinese central bank indicates that the structured deposits of Chinese banks hit a record high of 11.22596 trillion yuan in February, breaching the 11 trillion yuan threshold for the first time.

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