Financial companies' "Fixed Income" retreat as "Hybrid" trend rises

By the end of 2025, the bank wealth management market, which has successfully surpassed 33 trillion yuan, is undergoing structural adjustments. On March 5, Beijing Business Daily reporters found that among the 32 wealth management companies, 13 institutions—including China Post Wealth Management, Xingyin Wealth Management, Guangyin Wealth Management, Puyin Wealth Management, Hengfeng Wealth Management, Hangyin Wealth Management, Huiyin Wealth Management, Suyin Wealth Management, Shangyin Wealth Management, BlackRock CCB Wealth Management, Qingyin Wealth Management, Huihua Wealth Management, and Banque Populaire Agricultural Bank Wealth Management—have successively released their 2025 annual reports, presenting their latest business performance.

Overall, the industry is shifting from a pure fixed-income dominance to a trend of “fixed income foundation with diversified enhancements,” with hybrid products continuously expanding and actively engaging in A-share IPO subscriptions. This has become a key strategy for wealth management firms to increase returns and compete for clients. Industry insiders believe this trend is not only a proactive response to market conditions but also a crucial step for wealth management companies to move toward diversified, layered, and precisely matched mature markets.

Hybrid Wealth Management Products Continue to Expand

As of March 5, Beijing Business Daily reporters found that the 13 disclosed 2025 “performance reports” show that their remaining scales have all achieved positive growth, maintaining steady industry expansion.

Among them, Xingyin Wealth Management, Puyin Wealth Management, and China Post Wealth Management each have scales exceeding one trillion yuan, at 2.43 trillion, 1.47 trillion, and 1.32 trillion yuan respectively. Suyin Wealth Management, Hangyin Wealth Management, Shangyin Wealth Management, Huiyin Wealth Management, and Qingyin Wealth Management, all city commercial bank-affiliated firms, also performed well, with scales of 826.159 billion, 607.599 billion, 385.865 billion, 236.485 billion, and 205.613 billion yuan, respectively, all showing steady growth. From the growth rate perspective, joint venture wealth management companies are expanding particularly rapidly, with Banque Populaire Agricultural Bank Wealth Management leading the industry with a year-over-year growth of 83.25%.

In addition to steady scale expansion, product structure adjustments have become a major core change in the 2025 wealth management market. Based on reports from various companies, while fixed-income products remain the main offerings, their proportion has gradually declined. Conversely, the share of hybrid wealth management products has increased, making the industry’s diversified product layout trend increasingly clear.

For example, by the end of 2025, Xingyin Wealth Management’s fixed-income products accounted for 95.1% of its remaining wealth management products, down 0.43 percentage points from 95.53% at the end of June 2025; hybrid products increased from 3.35% to 3.99%. Hangyin Wealth Management’s 2025 annual report also shows a similar trend, with fixed-income products decreasing to 99.22% of the total, while hybrid products increased. Similarly, Huiyin Wealth Management’s fixed-income product proportion decreased by 0.08 percentage points from the end of June 2025, with hybrid products rising by 0.14 percentage points.

According to data from the Bank Wealth Management Registration and Custody Center, by the end of 2025, fixed-income products had a remaining scale of 32.32 trillion yuan, accounting for 97.09% of all wealth management products, a decrease of 0.24 percentage points from the beginning of the year; hybrid products had a remaining scale of 0.87 trillion yuan, accounting for 2.61%, an increase of 0.17 percentage points. The scales of equity, commodity, and financial derivatives products are relatively small, at 0.08 trillion yuan and 0.02 trillion yuan respectively.

Regarding this industry change, Wang Pengbo, Chief Analyst at Bo Tong Consulting, stated that under the continued pressure on asset-side yields, wealth management companies are seeking to increase returns through product structure adjustments. “Current deposit interest rates are declining, coupled with low bond yields, making traditional fixed-income strategies insufficient to meet investors’ expectations for moderate returns. Hybrid products, with their broader investment scope including stocks and bonds, can respond more flexibly to market changes,” Wang emphasized. He added that this trend is not short-term but a necessary choice deepening the industry’s shift toward net asset value (NAV) transformation.

Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance, further analyzed that in the long term, “fixed income primarily, hybrid as auxiliary, and diversified development” will become the long-term pattern of the wealth management industry. The core client base of bank wealth management is mainly conservative investors with rigid demand for principal safety, so the status of fixed-income products as the “ballast” will remain unchanged, with an expected stable proportion of 60%–70%. Hybrid products will become the key battleground for institutional differentiation, with their share expected to rise from the current 10%–15% to 20%–30%, serving as a critical area for wealth management firms to compete on research and development capabilities and brand differentiation. Niche products such as equity, commodities, and financial derivatives will also expand in an orderly manner to meet the personalized needs of high-net-worth clients and specific scenarios, ultimately forming a mature market with diversified layers and precise matching.

Leveraging New IPOs to Enhance Returns

This structural adjustment is also reflected in the participation of many wealth management companies in offline subscriptions for A-share IPOs. Beijing Business Daily reporters found that since the beginning of 2026, wealth management firms have frequently appeared on the offline subscription lists of multiple IPO companies, successfully qualifying for effective bids, becoming important players in the IPO “market.”

Specifically, on January 29, in the subscription announcement of Linping Development on the Shanghai Stock Exchange main board, four products under Xingyin Wealth Management were collectively included, three of which are hybrid products: “Xingyin Wealth Management Li Fu Xing Cheng Alpha One-Month Holding,” “Xingyin Wealth Management Li Fu Xing Cheng Alpha Daily Open,” and “Xingyin Wealth Management Xing Rui All-Star No.1,” each applying for 5.5 million shares at 38.41 yuan per share, alongside one fixed-income pension product, all making the effective bid list. Meanwhile, Ningyin Wealth Management also actively participated in offline IPO subscriptions, with six hybrid products applying for 5.5 million shares at 38.36 yuan per share, also successfully qualifying. Earlier, in the subscription list of Shimao Co., Ltd. on the Shenzhen Stock Exchange main board, multiple hybrid products from Ningyin and Xingyin Wealth Management also appeared on the effective bid list.

In fact, the increased proportion of hybrid products behind this is a proactive response by wealth management firms to market changes and a strategy to boost returns. Bai Wenxi explained that according to the rules for offline allotment of A-share IPOs, institutional products participating in offline IPOs must meet certain equity investment position requirements. Hybrid products naturally have stock position space, allowing flexible allocation of underlying assets to meet IPO participation thresholds, with greater yield elasticity. Pure fixed-income products, limited by their equity positions, often find it difficult to meet participation standards.

Bai further explained that participation of hybrid products in IPOs is not just for IPO gains but a natural extension of the "fixed income + " strategy. IPO gains as an “additional return” component can significantly improve risk-adjusted returns. The stock holdings in hybrid products can synergize with the existing equity allocations, reducing trading costs of separate positions. After the new shares are listed, they can be flexibly disposed of based on market performance, either held long-term or realized for profit, feeding back into the fixed-income portion.

Beijing Business Daily Reporter: Meng Fanxia, Zhou Yili