Wealth Management Products Bring $154.5 Billion in Returns to Chinese Investors in 2020, Retail Investors and Net Value Products Predominate

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Chinese investors reaped greater returns from wealth management products (WMP’s) in 2020 despite the adverse economic impacts of the COVID-19 pandemic.

As of the end of 2020 the bank wealth management market stood at 25.86 trillion yuan, for a YoY rise of 6.9%, according to figures from the “China Banking Sector Wealth Management Market Annual Report (2020)” (中国银行业理财市场年度报告(2020年)) released by the Bank Wealth Management Registration and Depository Centre (银行业理财登记托管中心).

In 2020 bank WMP’s produced total returns of 993.25 billion yuan (approx. USD$154.5 billion) for Chinese investors, for a YoY rise of 7.14%.

The number of investors holding bank WMP’s in 2020 was 41.6248 million, for an increase of 86.85% compared to the end of 2019. Retail investors comprised 99.65% of Chinese WMP investors.

The balance of outstanding net-value WMP’s totalled 17.4 trillion yuan as of the end of 2020, for a YoY increase of 59.07%. Net-value WMP’s accounted for 67.28% of the balance of outstanding bank WMP’s, for an increase of 22.06 percentage points compared to the end of the preceding year.

As of the end of 2020 the balance of outstanding interbank WMP’s was 390 billion yuan, for a YoY decline of 53.86%.

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