New wealth management products difficult to sell, with 35 failed issuances already this year! Amid volatile market conditions, institutions issue reassuring statements

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

As of March 24, according to incomplete public information compiled by Securities Times, since 2026, at least 35 wealth management products from companies such as Huaxia Wealth Management, Puyin Wealth Management, and Huihua Wealth Management have failed to be issued because the actual fundraising amount did not meet the minimum issuance scale specified in the prospectus. This number far exceeds the levels seen in previous years. Most of these failed products are fixed-income type.

On one hand, some fixed-income products are failing to be issued; on the other hand, recent global market volatility and fluctuations in equity assets have caused some structured wealth management products to see net value declines. In response, many bank wealth management companies have issued statements to reassure investors, reminding them to view short-term fluctuations rationally and to maintain confidence.

Over 30 Failures in Fundraising, Significantly Higher Than in Previous Years

Despite expectations of continued “deposit migration,” in a low-interest-rate environment, fixed-income assets are frequently hitting bottom, leading to further declines in benchmark and actual yields of fixed-income bank wealth management products. Under this backdrop, some newly issued fixed-income wealth management products are struggling to sell.

Since 2026, the number of failed fundraising cases for newly issued bank wealth management products has increased significantly. According to data from Securities Times, as of March 24, at least 35 products failed to be issued because the total amount raised did not reach the lower limit specified in the product prospectus, including products planned by wealth management firms and some regional small and medium-sized banks.

Compared with the same period in previous years, the failure rate in the first quarter of 2026 has risen sharply. Based on incomplete data from iFinD, the number of failed products in the first quarter of 2025, 2024, and 2023 were 4, 12, and 13 respectively.

Specifically, Huaxia Wealth Management has the most failed products this year, with 15; Puyin Wealth Management and Huihua Wealth Management have 6 and 5 respectively. Additionally, products from China Merchants Bank Wealth Management, Everbright Wealth Management, Bank of Communications Wealth Management, Guangfa Bank Wealth Management, and Bohai Bank Wealth Management also failed to be launched. Some regional small banks, such as Nanhai Rural Commercial Bank, Yuyao Rural Commercial Bank, and Hangzhou United Bank’s proprietary products, also failed due to insufficient scale.

From the characteristics of these failed products, they are quite similar. Most 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 or low risk. Regarding operation mode, most are closed-end products, covering periods of over six months, one year, and even short-term products of 90 days, 30 days, and 14 days. As for target clients, most are aimed at individual investors, with some institutional products planned by Puyin Wealth Management and others.

Poor Subscription Intent for Closed-End Products

Zhao Yaqin, founder of Guan Tiao Consulting, believes that compared to public funds, bank wealth management products have lower issuance costs, simpler processes, and smaller sunk costs. Therefore, wealth management firms are not overly committed to issuance. If channel promotion is insufficient or product design does not meet market needs, lacking core competitiveness, and if market recognition is low, fundraising may fall short.

From the perspective of product operation characteristics, Zhao Yaqin notes that closed-end fixed-income wealth management products have fixed lock-in periods, during which redemption is not possible, limiting liquidity. Currently, investors generally do not want their funds to be locked up long-term, which directly leads to low subscription willingness due to poor market fit. Open-ended products are more popular in the market, but the issuance of closed-end fixed-income products still exceeds that of open-ended ones.

Puyi Standard previously pointed out that generally, during periods of low market sentiment and poor issuance environments, failures are more likely. Additionally, products that issuers have laid out in bulk may face sales difficulties once market conditions change. The organization also noted that as investors’ investment levels improve and product types become more diverse, market competition will intensify, making fundraising failures more normal.

Meanwhile, the performance benchmark of fixed-income products is also declining further. According to Puyi Standard data, in February 2026, the average performance benchmark of newly issued open-ended products was only 1.85%, and for closed-end products, 2.35%.

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

Market Volatility Prompts Wealth Management Firms to Reassure Investors

Recently, global financial markets experienced significant turbulence due to Middle East tensions, with notable fluctuations in the A-share market.

In response to market volatility, several bank wealth management companies have issued “letters to investors,” aiming to stabilize investor sentiment, encourage rational views of short-term fluctuations, and maintain confidence. As of March 24, companies such as Xingye Bank Wealth Management, Xinying Wealth Management, Everbright Wealth Management, Hangzhou Bank Wealth Management, and Nanyue Bank Wealth Management have issued statements.

Xingye Wealth Management stated that although the US-Iran conflict has increased uncertainties in supply chains and energy prices, China’s relatively stable geopolitical situation, complete industrial system, and diversified energy sources mean the actual economic impact is limited. They believe that despite short-term shocks from overseas, the market will experience fluctuations, but these are just temporary setbacks in a slow bull market, and market adjustments present good opportunities to allocate high-quality equity assets.

On the same day, Xinying Wealth Management commented that “the risk appetite decline driven by global events usually does not last long, and at the current stage, it is not advisable to blindly sell off.” They also believe that from a 6-12 month mid-term perspective, with economic bottoming out and China’s economic transformation deepening, the A-share market still has resilience for upward recovery, and “fixed income+” products can continue to be held.

Everbright Wealth Management explained that “fixed income+” products are composed of “fixed income” and “plus” components. They emphasized that the main part of the product is high-quality fixed income assets, which are less volatile and relatively stable in returns, serving as the ballast of the product and performing steadily in the current environment. The fluctuations in net value are mainly due to the “plus” part of the product. They conveyed to clients that market pricing will gradually become more rational and hope to give strategies more time and patience.

Local city commercial bank wealth management firms also explained to investors that, with the Shanghai Composite Index retreating near 3,800 points, valuation pressures and pessimism have been largely alleviated; the recent sharp correction in gold prices reflects concerns over a strong dollar and tightening liquidity, but the high-risk levels accumulated earlier have been somewhat mitigated, laying a more solid foundation for future proper pricing; bond shocks mainly affect long-term interest rates, with short-term rates relatively less impacted, and overall risks are within controllable ranges.

According to grassroots bank relationship managers, many multi-strategy wealth management products have experienced significant declines recently, but after explanations of the reasons for volatility, most clients remained relatively calm. From the sales perspective, wealth managers are currently guiding clients to purchase closed-end products with maturities of over one year.