Financial companies' "Fixed Income" retreat as "Hybrid" trend rises

By the end of 2025, the bank wealth management market, which has successfully surpassed 33 trillion yuan, is undergoing structural adjustments. On March 5, Beijing Business Daily reporters found that among 32 wealth management companies, 13 institutions—including China Post Wealth Management, Xingyin Wealth Management, Guangyin Wealth Management, Puyin Wealth Management, Hengfeng Wealth Management, Hangyin Wealth Management, Huiyin Wealth Management, Suyin Wealth Management, Shangyin Wealth Management, BlackRock CCB Wealth Management, Qingyin Wealth Management, Huihua Wealth Management, and Societe Generale Agricultural Bank Wealth Management—have successively released their 2025 annual reports, presenting the latest business performance “report cards.” Overall, the industry is accelerating its shift from pure fixed income dominance to a strategy of “fixed income foundation with diversified enhancement,” with continuous expansion of hybrid products and active deployment in A-shares IPOs, becoming key strategies for wealth management firms to increase profits and attract clients. Industry insiders believe this trend is not only a proactive response to market conditions but also a crucial step for wealth management companies to actively move toward diversified, layered, and precisely matched mature market structures.

Continuous Expansion of Hybrid Wealth Management Products

As of March 5, Beijing Business Daily reporters found that the 13 disclosed 2025 “performance reports” of wealth management companies all showed positive growth in their existing scale, maintaining steady industry expansion.

Among them, Xingyin Wealth Management, Puyin Wealth Management, and China Post Wealth Management each have scales exceeding one trillion yuan, at 2.43 trillion, 1.47 trillion, and 1.32 trillion yuan respectively. Suyin Wealth Management, Hangyin Wealth Management, Shangyin Wealth Management, Huiyin Wealth Management, and Qingyin Wealth Management, all city commercial bank-affiliated firms, also performed well, with scales of 826.159 billion, 607.599 billion, 385.865 billion, 236.485 billion, and 205.613 billion yuan, respectively, all showing steady growth. In terms of growth rate, joint venture wealth management companies are expanding particularly rapidly, with Societe Generale Agricultural Bank Wealth Management leading the industry with a year-on-year growth of 83.25%.

In addition to steady scale expansion, product structure adjustments have become a major core change in the 2025 wealth management market. According to reports from various companies, while fixed income products remain the main offerings, their proportion has gradually declined. Conversely, the share of hybrid wealth management products has increased, making the industry’s diversified product layout trend increasingly clear.

For example, by the end of 2025, Xingyin Wealth Management’s fixed income products accounted for 95.1% of its total, down 0.43 percentage points from 95.53% at the end of June 2025; hybrid products increased from 3.35% to 3.99%. Hangyin Wealth Management’s 2025 annual report also shows a similar trend, with fixed income products decreasing to 99.22% and hybrid products rising. Similarly, Huiyin Wealth Management’s fixed income product proportion decreased by 0.08 percentage points from the end of June 2025, while hybrid products increased by 0.14 percentage points.

According to data from the Bank Wealth Management Registration and Custody Center, by the end of 2025, fixed income products had a remaining scale of 32.32 trillion yuan, accounting for 97.09% of all wealth management products, a decrease of 0.24 percentage points from the beginning of the year; hybrid products had a scale of 0.87 trillion yuan, accounting for 2.61%, an increase of 0.17 percentage points. The scales of equity, commodity, and financial derivatives products are relatively small, at 0.08 trillion yuan and 0.02 trillion yuan respectively.

Regarding this industry change, Wang Pengbo, Chief Analyst at Bo Tong Consulting, stated that under the continued pressure on asset-side yields, wealth management companies are seeking to increase returns through product structure adjustments. “Current deposit rates are declining, coupled with bond yields remaining low, making traditional fixed income strategies unable to meet investors’ expectations for moderate returns. Hybrid products, with their broader investment scope including stocks and bonds, can respond more flexibly to market changes.” Wang emphasized that this trend is not short-term but a necessary choice after the deepening of the wealth management industry’s transition to net value.

Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance, further analyzed that in the long term, “fixed income mainly, hybrid supplementary, diversified development” will become the long-term pattern of the industry. The core customer base of bank wealth management is mainly conservative investors with rigid demand for principal safety, so the fixed income “cornerstone” position will remain stable, expected to account for 60%–70%. Hybrid products will become the key battleground for institutional differentiation, with their share expected to rise from the current 10%–15% to 20%–30%, serving as a critical area for wealth management firms to compete on research and development capabilities and brand differentiation. Niche products such as equity, commodities, and financial derivatives will also expand in an orderly manner to meet the personalized needs of high-net-worth clients and specific scenarios, ultimately forming a mature, multi-layered, and precisely matched market structure.

Leveraging IPOs to Enhance Returns

This structural adjustment is also reflected in the participation of many wealth management companies in offline A-share IPO subscriptions. Beijing Business Daily reporters found that since the beginning of 2026, wealth management firms have frequently appeared on the offline subscription lists of multiple IPO companies, successfully qualifying for effective bids, becoming important players in the IPO market.

Specifically, on January 29, in the subscription announcement of Shanghai Stock Exchange main board company Linping Development, four products from Xingyin Wealth Management were included, three of which are hybrid products: “Xingyin Wealth Management Li Xing Cheng Alpha One-Month Holding,” “Xingyin Wealth Management Li Xing Cheng Alpha Daily Open,” and “Xingyin Wealth Management Xingrui All-Star No.1,” each applying for 5.5 million shares at 38.41 yuan per share, alongside one fixed income pension product, all making the effective bid list. Meanwhile, Ningyin Wealth Management also actively participated in offline IPOs, with six hybrid products applying for 5.5 million shares at 38.36 yuan per share, also successfully qualifying. Earlier, in the subscription list of Shenyang Stock Exchange main board company Shimeng Co., Ltd., multiple hybrid products from Ningyin and Xingyin Wealth Management appeared on the effective bid list.

In fact, the rising proportion of hybrid products behind this is a proactive response by wealth management firms to market changes and a strategy to increase returns. Bai Wenxi explained that according to the rules for offline allotment of A-share IPOs, institutional products participating in offline IPOs must meet certain equity investment position requirements. Hybrid products naturally have stock position space, allowing flexible allocation of underlying assets to meet IPO participation thresholds, with greater return elasticity. Pure fixed income products, limited by their equity positions, often find it difficult to meet participation standards.

Bai further explained that participation of hybrid products in IPOs is not just for IPO gains but a natural extension of the "fixed income + " strategy. IPO gains as an “additional return” component can significantly improve risk-adjusted returns. The stock holdings in hybrid products can synergize with the existing equity allocations, reducing trading costs of individual positions. After the new shares are listed, they can be flexibly disposed of based on market performance, either held long-term or realized for profit, feeding back into the fixed income portion.

Beijing Business Daily reporters: Meng Fanxia, Zhou Yili