Ten wealth management subsidiaries collectively issue a statement: The long-term allocation value of A-shares and gold becomes increasingly prominent—take a rational view of the net value fluctuations of “Fixed Income+”.

Ask AI · Ten wealth management subsidiaries all speak out—what does this reflect about market sentiment?

China Financial News Network (Caixin) March 25 Report (Edited by Yang Bin) Faced with major turbulence in global financial markets since March, triggered by the developments in the Middle East, more than ten wealth management firms have recently issued “a letter to investors.” In response to market volatility in markets such as A-shares and gold, the wealth management companies “address investors”: view short-term fluctuations rationally and hold steadfast confidence in long-term retention.

According to an incomplete tally by China Financial News Network, as of March 25, at least ten wealth management subsidiaries—including Industrial and Commercial Bank of China Wealth Management, Agricultural Bank of China Wealth Management, Bank of Communications Wealth Management, Xingyin Wealth Management, Xinyin Wealth Management, Everbright Wealth Management, Minsheng Wealth Management, Hangzhou Bank Wealth Management, Nanjing Bank Wealth Management, and Huishang Wealth Management—have already published statements to soothe investor sentiment.

The long-term allocation value of A-shares and gold remains unchanged

Since March, as the situation in the Middle East has continued to escalate, major asset classes have been hit. In particular, the Strait of Hormuz blockade pushed oil prices soaring, which in turn led to a sharp rise in inflation expectations and weakened expectations for Federal Reserve rate cuts. As a result, the price declines of assets such as A-shares and gold have been especially pronounced. The Shanghai Composite Index fell to a low of 3,800 on March 23, and international gold prices’ local high point dropped by 20%, heading straight toward $4,100 per ounce.

The major bank wealth management subsidiaries have all, in their “letter to investors,” explained the reasons for the recent fluctuations in major asset classes, and reaffirmed their strong view that assets such as A-shares and gold have long-term allocation value.

Xingyin Wealth Management said that although the conflict between Iran and the U.S. has increased uncertainty in supply chains and energy prices, China has a relatively stable geopolitical landscape, a complete industrialized system, and diversified energy sources—so the impact on the real economy is actually limited. The performance of A-shares is driven more by endogenous factors. Although the market will still experience volatility in the short term due to overseas shocks, this is only a detour during a slow bull market; market adjustment is a good opportunity to build positions in high-quality equity assets.

Industrial and Commercial Bank of China Wealth Management also believes that China has ample strategic crude oil reserves, diversified crude oil import channels, and a well-developed energy industrial chain, resulting in strong energy supply stability. Domestic inflation levels are moderate, and the transmission of oil prices to domestic inflation is relatively limited; the risk of stagflation is clearly lower than that of overseas countries. At present, domestic policies continue to follow a positive orientation. Production, consumption, and investment data are gradually improving, and China-U.S. economic and trade relations are stabilizing in phases; the logic that the market will be favorable in the long term has not changed.

In the bond market, Hangzhou Bank Wealth Management stated that the impact on bonds is mainly reflected in the rise of long-end yields, while the short end is affected relatively less, leaving overall risk within a controllable range.

Nanjing Bank Wealth Management believes that the probability of long-bond yields continuing to rise sharply is low. Current efforts to repair domestic demand are limited, and the economy still needs to adjust its structure. Looser liquidity is needed to support economic transformation and pro-active fiscal policy; liquidity conditions are expected to remain loose. From a fundamentals perspective, PPI is expected to turn positive in the second quarter, but because domestic demand is not strong and the central bank is taking care to support liquidity, the risk of long bonds continuing a one-way adjustment is small.

Beyond external macro disturbances, Huishang Wealth Management pointed out that domestic liquidity has been relatively tight in the near term, and that institutions rebalancing their portfolios has further amplified volatility in this market cycle. Factors such as tax payments at quarter-end, cross-quarter placement reserves, and net liquidity withdrawals through open market operations have tightened liquidity at the margin. Meanwhile, with March 31 approaching—the evaluation time point for the insurance industry—some insurance capital and “fixed-income plus” products, to meet targets and prevent drawdowns, have temporarily reduced equity positions, accelerating the negative-feedback chain and hastening a broad decline across the market.

For gold specifically, which has seen especially sharp declines recently, Hangzhou Bank Wealth Management believes that this objectively reflects market concerns about a strong U.S. dollar and tighter liquidity. However, the high-level risks accumulated earlier have been resolved to a certain extent, which will provide a more solid basis for more reasonable pricing going forward:

Nanjing Bank Wealth Management firmly remains bullish on gold because its two major core supports have not changed. First, there has been no substantive improvement in U.S. fiscal discipline—U.S. Treasury debt is nearing 40 trillion and continues to rise, placing long-term pressure on U.S. dollar credit. Second, the long-term trend of global central banks purchasing gold has not changed, providing ongoing support for gold prices.

Huishang Wealth Management further noted that gold has not failed as a safe-haven asset; rather, due to liquidity shocks and de-leveraging pressure, it has been treated as a high-liquidity asset for priority liquidation. The short-term pressure in the bond market is also largely influenced by sentiment transmission from falling equities and disruptions in liquidity; bonds are passively following the adjustment, which does not mean the medium-term allocation logic in the bond market has reversed.

Over the past two days, both A-shares and gold prices have rebounded. The Shanghai Composite Index closed today above 3,930, and international gold prices returned to $4,500 per ounce.

Bank of Communications Wealth Management believes liquidity is the “signal light” for a market turnaround. At present, the key factor affecting global asset pricing is changes in the liquidity environment. It is recommended to pay attention to the policy direction of the Federal Reserve, the trajectory of global funding rates, and the attitude and actions taken by the United States in promoting the easing of geopolitical conflicts. Once liquidity shows marginal improvement, most assets are expected to recover.

View “fixed-income plus” net value volatility dialectically and wait for the recovery

In recent asset volatility, net value drawdowns for “fixed-income plus” and option-inclusive wealth management products have been even more pronounced. In their “letter to investors,” major wealth management subsidiaries have repeatedly advised investors to remain patient and wait for net value recovery in “fixed-income plus” products.

Xinyin Wealth Management said that in the short term, liquidity shocks brought about by falling global risk appetite driven by event-driven factors generally do not last long. At the current position, it is not advisable to blindly sell into declines. From a medium-term perspective of 6–12 months, as the logic of the economy bottoming out continues—along with the deepening of China’s economic transformation— the A-share market still has resilience for upward recovery; “fixed-income plus” products can continue to be held.

Agricultural Bank of China Wealth Management recommends investors maintain composure and patiently hold option-inclusive wealth management products such as “fixed-income plus,” taking a long-term view of the investment and waiting for asset values to return. If there is room, investors may appropriately allocate to option-inclusive products at relatively low levels to capture the return potential brought by subsequent market recovery.

Everbright Wealth Management suggests that investors view the net value volatility of “fixed-income plus” products dialectically. In their “letter to investors,” institutions explained that “fixed-income plus” products are made up of stable returns provided by the “fixed-income” portion, along with the flexible upside potential embedded in the “plus” portion; thus, net value volatility is precisely the natural expression of how “fixed-income plus” products play their role in asset allocation. They hope investors give the strategy time and give the assets patience; the products’ elasticity and volatility are often also where opportunities lie.

Minsheng Wealth Management also pointed out that the net value volatility of “fixed-income plus” wealth management products is precisely a natural reflection of the structure of its asset allocation. They hope investors give the strategy time and give the assets patience; market volatility is often where opportunities lie.

Although facing global systemic tail risks, almost no asset can remain unaffected, wealth management firms still look favorably on asset allocation to diversify risk.

Nanjing Bank Wealth Management believes that severe fluctuations in a single asset can easily trigger emotional operations. By allocating to assets with low correlation and building a portfolio characterized by “a base layer, an offensive layer, and a hedging layer,” overall volatility can be reduced and portfolio resilience strengthened. During market adjustments, using systematic investment plans or buying in batches can effectively reduce the risk of building positions concentrated at a single time point, smooth costs, and accumulate high-quality assets.

Huishang Wealth Management stated that the difficulty of allocating to single assets has increased; it is more suitable to diversify risk through a multi-tier product system. For low-risk investors, fixed-income products may be prioritized, using a bond base to enhance portfolio stability. For investors who want to balance stability and flexibility, focus on fixed-income enhancement products—use “bond base layer + equity enhancement” to smooth volatility and seize opportunities from subsequent recoveries. For investors with higher risk tolerance, it may be appropriate to consider hybrid products and capture the medium- to long-term allocation window after market adjustment.

(China Financial News Network | Yang Bin)