More than 350 cash-management products: the average seven-day annualized yield rate for the first half of the year has fallen below 1%.

In the first half of 2026, the People’s Bank of China maintained a mildly accommodative policy stance. During this period, DR007 (the interbank 7-day repo rate secured by deposits at deposit-taking institutions) fluctuated narrowly around the policy rate of 1.4%. The 1-year government bond yield has already fallen from around 1.3% at the start of the year to a low of around 1.10%. Moreover, the 1-year interbank certificate of deposit (CD) yield for AAA issuers even dropped below the 1.45% threshold.

The low interest-rate environment in the money market directly suppressed the upside potential of cash-management products. In the first half of the year, the average annualized seven-day yield for nearly half a year for more than 350 products fell below 1%.

Narrower coupon income for underlying assets; outlook remains cautious

The high-yield of 2.5%–3% is already a thing of the past. The central tendency of returns for Renminbi cash-management wealth-management products is continuing to move downward. According to Nancai Wealth Management Tong, as of June 30, wealth-management firms had a total of 7,941 outstanding Renminbi public cash-management wealth-management products (including different share classes).

In terms of return structure, the market shows a clear “pyramid-shaped” divergence. Twenty-six products had an average annualized seven-day yield above 2% in the first half of the year. More than half of the products’ yield averages were concentrated in the 1%–1.3% range. The number of products with average yield in the 1%–1.1% and the 1.3%–1.4% ranges each accounted for one-tenth. In addition, more than 350 products had average yields below 1%.

Affected by the macro environment, the coupon income or interest from cash-like products’ underlying assets (such as interbank CDs, short-term financing bills, and buy-backs/repurchase agreements) has narrowed across the board. Looking ahead, if market interest rates fall further, the yields of cash-management wealth-management products may continue to decline as well.

Performance gaps of more than 30BP at both ends; institutions show divergence

Specifically regarding performance by institution, among the Renminbi cash products of 25 bank wealth-management subsidiaries, the average annualized seven-day yield for the first half of the year generally fell within the 1.2%–1.5% range. Among them, Su Yin Wealth Management ranked first with an average annualized seven-day yield of 1.477%. Shang Yin Wealth Management and Yu Nongshang Wealth Management followed closely, with their average yield averages also breaking above 1.4%.

It should be noted that some institutions’ average returns are significantly lower, placing them relatively farther down the ranking. For example, the average annualized seven-day yield of the Renminbi cash-management products of CMB Wealth Management was 1.136%, more than 30 basis points lower than the top-performing institution. However, this institution’s number of Renminbi cash-management products reached 1,065. The large base magnifies the weakness in the return structure: 94 products had yields below 1%, while 761 products crowded into the low 1%–1.2% range.

Two cash-management products: average annualized seven-day yields exceed 2% in the first half of the year

Su Yin Wealth Management’s “Qiyuan Money 13 B” delivered a leading performance among cash-management products in the first half of the year. Its average annualized seven-day yield reached 2.302%, and its per-10,000-yuan profit has remained above 0.6 yuan for the long term.

From the first-quarter portfolio structure, the products have strong defensive characteristics: cash and bank deposits accounted for more than 50%, complemented by a small amount of interbank CDs and short- to medium-duration bonds to enhance returns. In the first quarter, the B share class recorded an annualized seven-day yield of 2.29%, confirming the manager’s ability to precisely capture the high point of yields during the “bull steepening” phase in the bond market, as well as flexibly use a money-fund enhancement strategy to seek returns across periods.

Looking ahead to the second quarter, the manager expects monetary policy to remain steady and mildly accommodative. Strategically, it plans to continue focusing on high-grade liquid assets and to allocate at opportune times.

In the first half of the year, the average annualized seven-day yield also surpassed 2% for another product: Shang Yin Wealth Management’s “Yijingling 17 Cash Management Wealth-Management Product W2025917 Period A.”

Worth noting is that after look-through analysis, the product’s holdings show that its creditor-based assets account for more than 80% of the total, forming the core source of returns.

During the first quarter, the manager realized profits through opportunistic trades and appropriately adjusted duration to control deviation risk. For the second quarter, the manager plans to continue with a leveraged trading strategy and a barbell-type allocation.

From a strategy perspective, both managers share the view that the “bond market’s odds of winning are limited,” which aligns with the current macro backdrop of “ample liquidity but a cooling in rate-cut expectations.”

Data note: The product statistics cover public cash-like products issued by wealth-management firms. The data cut-off date is June 30, 2026, and the statistical period is the past half year.

[Author: Hu Hexin] (Editor: Wen Jing)

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