Bank Financial Products Continued To Decline In Yields

According to a reporter's recent survey, this year, the expected earnings of various financial products, including bank financing, national debt, Internet "baby" and P2P, are substantially shrinking, so the market has a "second killing" situation of high income financial products. Products with an expected annual yield of about 3% are indeed selling harder, but products with an annual yield exceeding 5% are expected to be robbed in less than a few minutes.

Experts pointed out that with the year-end storage nodes and holiday special nodes assessment pressure, it is expected that earnings will remain stable or slightly lower before the end of the year.

According to the analysis, the yield of bank financial products continued to decline in the early November, but remained stable after two weeks. The first three weeks remained at 4.26%, with an average weekly circulation of 1340. Earnings are expected to remain stable or slightly lower by the end of the year.

Under the shortage of assets, financial institutions lack high-quality high yield investment targets, which will lead to the decline in earnings of financial products. This year, all kinds of financial products, including bank financing, treasury bonds, Internet baby, P2P, have all shrunk dramatically.

"At the end of the year, market liquidity will tighten, and the earnings of bank financial products will remain stable or slightly lower. However, in the context of monetary easing, the probability of ending earnings at the end of the year will be relatively low. In 2016, the overall market environment is still relatively loose, and there may be further decline in bank financing income, but the decline will be narrowed compared with 2015. Liu Yinping, a financial analyst, told reporters.

At the end of the year, the consumption expenditure of investors is bigger. Therefore, we should pay attention to controlling the liquidity risk, especially the poor financial products such as bank financing products. We should reserve enough liquidity, which can be placed in the Internet "baby" product.

Reporter survey found that at present, the financial products market has seen the situation of volume and price down. The latest statistics show that the average expected rate of return of bank financial products last week was 4.36%, of which 4 products yield more than 6%, accounting for only 0.5% of the total amount of RMB non structural financial products. Although near the end of the year, the bank's financial returns did not reverse the downward trend.

At the same time, however, the pace of sale of financial products has not been significantly accelerated. According to statistics of the bank's network database, a total of 887 bank financial products were put on sale last week, with an average investment period of 124 days, of which 805 RMB non structured financial products were sold, with an average expected rate of return of 4.36%, down 0.02 percentage points from last week.

"There are not many people who buy products with an annual yield of about 3%, but 4% to 5%, especially those that are higher than 5%, will be killed instantly." A joint-stock bank personal business related personage told reporters that at present, customers have financial products as a savings mentality.

Another bank insider told reporters that the current high-yield products are indeed "rare", and the central bank's monetary policy will remain relatively relaxed for a period of time, through reverse repurchase and various maturities. Monetary instrument In order to maintain a moderately loose monetary policy, the capital side will also maintain a relaxed and balanced pattern as a whole, and the interest rate of funds will also remain at a low level. Affected by this, the yield of financial products is also in the downstream channel.

At the same time, more financial products have been terminated in the near future. According to incomplete statistics, three non structured RMB financial products were terminated early in the first quarter of 2015. Many of them have different financial products, including state-owned banks and commercial banks.

The reason for the premature termination of non structural financial products is that as the interest rate of savings and loans continues to decrease, the financiers with good quality assets can find lower cost funds in the market. It is an inevitable choice to repay the higher cost debt ahead of schedule, which makes the relevant financial products have to be terminated in advance.

Analysts believe that the early termination of financial products will not end soon. The central bank has been lowering interest rates and reducing the cost of social financing. The early payment of debt will also continue.

In the past, more structured financial products were usually terminated in advance. The structured financial products themselves were terminated with an early termination. Once the trend of the linked target triggers the conditions for early termination of products stipulated in the financial product instructions, the products will automatically terminate.

Purchase bank at the end of year financial products There are two points for attention:

1. pay attention to liquidity risk. Due to the high cost at the end of the year, and the poor liquidity of bank financing, once all the funds are invested, it is impossible to get any unexpected expenses. Therefore, we should reserve funds for life and unexpected expenses, which can be placed in products with high liquidity such as Internet babies.

2. pay close attention to high yield financial products at the end of the year. Some banks may be selling high at the end of the year. Revenue product To attract funds, some banks will sell "exclusive holiday" financial products on New Year's day and the eve of the Spring Festival. Their earnings are slightly higher than their daily financial products. Investors can pay close attention to them.