Newly launched financial products are not selling well, with 35 issuances failing within the year! Amidst volatile market conditions, institutions are issuing statements to reassure investors.

Source: Securities Times Network
Author: Xie Zhongxiang, Liu Xiaoyou

As the yields on fixed-income assets continue to decline, there has been a noticeable increase in failed issuance cases of bank wealth management products this year.

As of March 24, reporters from Securities Times China have compiled incomplete public information, showing that since 2026, wealth management companies such as Huaxia Wealth Management, Pudong Development Bank Wealth Management, and Huihua Wealth Management have had at least 35 wealth management products that failed to issue due to the actual raised amount not reaching the minimum issuance size during the issuance process, a number far exceeding historical levels for the same period. In terms of product types, the vast majority of the failed fundraising products are fixed-income products.

On one hand, some fixed-income products have failed to issue, while on the other hand, recent global market fluctuations and equity asset volatility have triggered a net value decline in certain rights-bearing wealth management products. In response, several bank wealth management companies have issued statements to reassure investors, with some reminding them to view short-term fluctuations rationally and maintain confidence in holding.

Over 30 failed issuances, far exceeding historical levels

Although the industry’s anticipated “deposit migration” continues to play out, in a low-interest-rate environment, fixed-income assets frequently hit rock bottom, leading to further declines in the performance benchmarks and actual yields of fixed-income bank wealth management products. Against this backdrop, some newly issued fixed-income wealth management products are “not selling.”

Since 2026, the number of failed issuances of newly released bank wealth management products has significantly increased. According to reporters from Securities Times China, based on the issuance announcements from wealth management companies and commercial banks, as of March 24, at least 35 wealth management products failed to issue because the total raised amount did not meet the minimum issuance size stipulated in the product prospectus, including products planned for issuance by wealth management companies and some regional small and medium-sized banks.

Compared to historical data, the frequency of failed issuances in the first quarter of 2026 has significantly increased. According to incomplete statistics from iFinD data, there were 4, 12, and 13 related failed issuance products in the first quarters of 2025, 2024, and 2023, respectively.

Specifically, Huaxia Wealth Management has had the highest number of failed fundraising products this year, reaching 15; Pudong Development Bank Wealth Management and Huihua Wealth Management have 6 and 5, respectively; at the same time, China Merchants Bank Wealth Management, Everbright Wealth Management, Bank of Communications Wealth Management, Guangdong Bank Wealth Management, and Bohai Bank Wealth Management also had products that failed to establish. In addition, local small and medium-sized banks such as Nanhai Rural Commercial Bank, Yuyao Rural Commercial Bank, and Hangzhou United Bank also faced failed issuances due to not meeting scale requirements.

According to the reporter’s analysis, the characteristics of the aforementioned failed issuance products are quite similar. In terms of investment type, the vast majority of failed fundraising products are fixed-income products, including pure debt fixed-income products and some enhanced fixed-income products; in terms of risk level, most are medium-low risk products and low-risk products; in terms of operational model, closed-end products are predominant, covering products with holding periods of more than six months and more than one year, as well as short-term holding period products of 90 days, 30 days, and 14 days; in terms of target customer types, most products are aimed at individual investors, with a few corporate wealth management products planned for issuance by institutions such as Pudong Development Bank Wealth Management.

Poor subscription willingness for closed-end products

Zhou Yiqin, founder of Guantao Consulting, believes that compared to public funds, the issuance costs of bank wealth management products are lower, the process is simpler, and the sunk costs are small, so wealth management companies do not have a strong obsession with guaranteed issuance. If channel promotion is insufficient or product design does not align well with market demand, leading to a lack of core competitiveness, once market recognition is low, it may result in the situation where the fundraising fails to meet standards.

From the perspective of product operation characteristics, Zhou Yiqin believes that closed-end fixed-income wealth management products have a fixed lock-up period, during which they cannot be redeemed, resulting in inherent liquidity limitations. Currently, investors are generally unwilling to let their funds be tied up for a long time, and the insufficient adaptability on the demand side directly leads to low subscription willingness. From the customer’s demand perspective, open-end products are more favored in the market, but the issuance of closed-end fixed-income products far exceeds that of the former.

Puyi Standard previously pointed out that generally, in a low market sentiment and poor issuance environment, failed issuances tend to occur; additionally, some products that issuing institutions previously laid out in bulk may face sales difficulties if the market changes. The institution also noted that as investors’ investment levels gradually improve and the types of wealth management products further diversify, market competition will become more intense, and investors will be more rational, making failed fundraising of wealth management products a norm.

On the other hand, the performance benchmarks for fixed-income products are also further declining. According to Puyi Standard data, in February 2026, the average performance benchmark for newly issued open-end products in the entire market was only 1.85%; the average performance benchmark for closed-end products was 2.35%.

In terms of yield, as of the end of February 2026, the annualized yield for cash management products over the past month was 1.25%, slightly down from the previous month; the overall average annualized yield for fixed-income products was 2.16%, a decrease of 146 basis points.

In a turbulent market, wealth management companies have been actively issuing statements to reassure investors

Recently, global financial markets have experienced significant volatility due to the situation in the Middle East, and the A-shares have also shown noticeable fluctuations.

In response to market volatility, several bank wealth management companies have successively released “letters to investors,” urging them to maintain a stable investment mindset, view short-term fluctuations rationally, and keep confidence in holding. As of March 24, companies such as Xinyin Wealth Management, Xinyin Wealth Management, Everbright Wealth Management, Hangyin Wealth Management, and Nanyin Wealth Management have issued statements to reassure investor sentiment.

In its letter to investors, Xinyin Wealth Management pointed out that although the conflict between the U.S. and Iran has led to increased uncertainty in supply chains and energy prices, China has a relatively stable geopolitical landscape, a complete industrial system, and diversified energy sources, resulting in limited actual economic impact. The institution believes that while the market may experience fluctuations due to short-term overseas shocks, it is just a period of fluctuation in a slow bull market, and market adjustments present a good opportunity to position quality equity assets.

On the same day, Xinyin Wealth Management released a market interpretation, stating: “Short-term liquidity shocks brought about by event-driven declines in global market risk preferences usually do not last long, and it is not advisable to blindly panic sell at this position.” The institution also believes that from a medium-term perspective of 6-12 months, as the economic cycle bottoms and the logic of China’s economic transformation deepens, the A-share market still possesses upward repair resilience, and “fixed income +” wealth management products can continue to be held.

Everbright Wealth Management explained in its “letter to investors” that the underlying assets of “fixed income +” products consist of both “fixed income” and “+” components, stating that the main portion of the product comprises high-quality fixed-income assets, which exhibit low volatility and relatively stable returns, serving as a ballast for the product and performing steadily in the current environment. The fluctuations in product net value mainly stem from the “+” components. The institution conveyed to clients that market pricing would gradually return to rationality and hopes to give strategies more time and patience.

From the perspective of city commercial bank wealth management companies, Hangyin Wealth Management explained to investors that the Shanghai Composite Index has retreated to around 3,800 points, with valuation pressures and pessimistic sentiment significantly released; the recent sharp correction in gold objectively reflects the market’s concerns about a strong dollar and tightening liquidity, but the high-level risks that had accumulated earlier have been somewhat alleviated, providing a more solid foundation for reasonable pricing in the future; the impact on bonds is more reflected in the long-end interest rates rising, with relatively limited effects on the short end, and overall risks are within a controllable range.

Reporters from Securities Times China learned from grassroots bank wealth management customer managers that recently, multi-strategy wealth management products have experienced significant declines, but most customers remain relatively calm after explanations of the fluctuation reasons. From the product sales side, wealth managers indicated that they are currently guiding customers to purchase closed-end products with terms of one year or longer.