Are Low-Risk Digital Asset Management Products Struggling to Sell? Multiple Bank Financial Products Face Fundraising Setbacks This Year

Banks’ new wealth management products are struggling to sell, with multiple product launches failing this year.

According to incomplete statistics from Beike Finance, there have been 14 terminated wealth management products from Huaxia Wealth Management alone. Most of these are closed-end, net value-based fixed income products with low to medium risk levels. Bohai Silver Wealth Management and Guangfa Silver Wealth Management have also announced the failure of their wealth management products this year.

Dong Ximiao, Chief Economist at Zhaolian and Deputy Director of the Shanghai Financial and Development Laboratory, pointed out that severe product homogeneity and mismatched demand and supply are the fundamental reasons. Additionally, in the environment of persistently low interest rates and an “asset shortage,” the yield space for fixed income products has been compressed. Their performance benchmarks generally fall into the “2%” or even “1%” range, greatly reducing their attractiveness to investors. This is also a key reason.

Severe Product Homogeneity? Huaxia Wealth Management Only in March, 6 Wealth Products “Failed”

Since March, Huaxia Wealth Management has repeatedly announced the failure of several products. Six products, including “Fixed Income Debt-Type Closed-End Wealth Management Product 1317,” “Pure Debt Fixed Income Closed-End Wealth Management Product 354,” and “HeXiang Fixed Income Wealth Management Product 37,” failed to meet the minimum issuance scale specified in their prospectuses due to insufficient fundraising.

Most of these products are closed-end, net value-based fixed income products with low to medium risk levels.

According to the product prospectus, “HeXiang Fixed Income Wealth Management Product 37” has a minimum issuance scale of 50 million yuan, mainly investing in money market instruments, standardized debt assets, non-standardized debt assets, and other fixed income assets, with equity assets accounting for 0-10%, and fixed income assets accounting for 90% (inclusive) to 100%.

“Fixed Income Pure Debt Closed-End Wealth Management Product 354” and “Fixed Income Debt-Type Closed-End Wealth Management Product 1317” both invest 100% in fixed income financial instruments, including money market tools, standardized debt assets, and other fixed income instruments compliant with regulatory requirements.

Huaxia Wealth Management’s “Fixed Income Debt-Type Closed-End Wealth Management Product 1317” prospectus. (Screenshot of the prospectus)

Since the beginning of this year, Huaxia Wealth Management has terminated 14 products.

In February, Bohai Silver Wealth Management announced that its “CaiShou YouLai” series fixed income, one-year closed-end wealth management products failed to meet the minimum fundraising scale and thus were not established. In January, Guangfa Silver Wealth Management’s “Happiness Add Profit” closed-end fixed income public offering product 3059 also failed to meet the minimum scale requirement specified in its prospectus.

Dong Ximiao pointed out that multiple fixed income, closed-end products failed to meet the minimum fundraising scale for various reasons. Among them, severe product homogeneity and demand-supply mismatch are fundamental causes. The failed products are concentrated in the closed-end, low- to medium-risk fixed income category, with designs that are “all the same,” lacking differentiation.

“Investors, worried about future uncertainties, generally show a strong preference for liquidity and are reluctant to lock funds into closed-end products that last months or even years, leading to a clear mismatch between supply and demand.”

Dong Ximiao believes that under the macro environment of low interest rates, the yields of wealth management products may continue to decline, and failures may persist. Meanwhile, as wealth management companies operate with increasing refinement, products with small fundraising scales that could lead to inefficiencies may be proactively halted. This is a natural market mechanism driving the wealth management market toward higher quality development.

Growth in the Existing Wealth Management Market Scale Future Trend toward Refined Operations

The China Banking Wealth Management Registration and Custody Center’s “China Banking Wealth Management Market Annual Report (2025)” shows that by the end of 2025, the wealth management market’s outstanding scale reached 33.29 trillion yuan, an 11.15% increase from the beginning of the year. The total earnings generated for investors over the year amounted to 730.3 billion yuan, a 2.87% year-on-year increase.

By the end of 2025, the number of investors holding wealth management products reached 143 million, a 14.37% increase from the start of the year, significantly higher than the 9.88% growth in 2024. Among them, individual investors accounted for 98.64%, and institutional investors numbered 1.94 million, accounting for 1.36%.

“Public fund issuance success rates are relatively high mainly because product registration requires significant manpower and resources. To ensure success, substantial investments are made in channel promotion, marketing, and customer outreach.”

Senior financial regulation expert Zhou Yiqin pointed out that the issuance costs for wealth management products are lower, the process is simpler, and sunk costs are small. Therefore, wealth management firms are not overly committed to ensuring issuance. If channel promotion is insufficient or product design does not sufficiently meet market needs, lacking core competitiveness, then if market recognition is low, fundraising may fall short.

Zhou Yiqin further explained that this is also related to the market-oriented transformation of the distribution ecosystem. In earlier years, the predecessor of wealth management companies, the bank asset management departments, had a one-to-one distribution relationship with their parent banks’ channels, relying heavily on internal channels to guarantee fundraising success.

“Now, the wealth management distribution ecosystem is becoming more diverse. Banks’ distribution channels are expanding, and channel performance assessments are becoming more market-oriented. They no longer prioritize selling products from their parent banks or partner institutions out of loyalty but instead focus on products’ historical performance, risk control capabilities, and customer fit. Only high-quality products can secure channel resources, while average products are naturally phased out.”

Zhou Yiqin said that wealth management product operations have clear scale lower limits because if the fundraising scale is far below this standard, the subsequent fixed costs for research, operation, and risk control will significantly increase. Therefore, some wealth management firms rationally choose to let certain products fail to avoid operational inefficiencies, reflecting the market’s move toward refined management.

Beijing News Beike Finance Reporter: Xu Yuting Editor: Chen Li Proofreader: Mu Xiangtang