Beijing'S Financial Products Rose Slightly At The End Of The Year To Usher In The Rally

Last week (November 21, 2015 -2015 November 27th), the average expected yield of RMB non structured banking products in Beijing was 4.32%, up 0.02 percentage points from the previous week, with an average investment period of 131 days.

From the perspective of capital cost and interest rate risk, banks consider that the most likely situation is to increase returns in the medium and short term, especially short-term products, but do not rule out that banks with relatively tight funds will substantially increase their earnings from financial products in different periods. Investors can pay close attention to such high-yield products on the basis of raising their sense of risk.

Short and medium term financial products

It has risen.

Among them, the average expected rate of return of financial products with a period of 1 to 3 months' investment increased by 0.02 percentage points to 4.25%; the average expected rate of return for financial products in the 3 to 6 months period was 4.35%, unchanged from the previous week; and the average yield of financial products in the medium and long term 6 months to 12 months decreased by 0.03 percentage points to 4.5%; the average expected rate of return for financial products over the period of more than 6 years dropped by a percentage point to that of the stock market.

Beginning in mid November,

Earnings decline narrowed, with a steady trend.

A financial analyst predicted that the end of the year IPO will restart blood collection, and the earnings of bank financial products may rebound in December.

However, based on the current domestic economic situation, the market is expected to reduce interest rates, coupled with the central bank's comprehensive utilization.

The adjustment of market liquidity is still expected to be "bad money" at the end of the year. Therefore, at the end of this year, there is little possibility that banks will substantially increase the earnings of financial products.

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RMB is included in the SDR. Under the current market environment, Wang Tao believes that the impact of the RMB's assessment and inclusion in China's stock market in November will be negative in the next 3-6 months, but in the long term it will be biased. "SDR"

Index provider MSCI now expects Chinese stocks (including A shares, H shares, ADR shares, red chips and private shares) to occupy 37.5% of the MSCI index and 4.8% of the MSCI global index in its "ultimate goal" scenario.

This will be better than Chinese stock.

Wang Tao also said that the possibility of a significant depreciation of the RMB in the short term is unlikely, but investors may not rule out its possibility, which could trigger a round of risk of "panic swap" between Chinese enterprises and residents.

Given the current valuation, China's ADR is particularly attractive if foreign investors are willing to hold Chinese assets.

Once MSCI incorporated ADR into its index in March 2016, ADR will account for 16-17% of the MSCI China Index.

On this basis, most investors are currently low matching China's ADR; however, given that the ADR 2016 growth rate is expected to exceed 30%, investors will not be able to ignore such an important sector.

In the long run, Wang Tao believes that the RMB will be included in the SDR, which will aggravate the outflow and inflow of the domestic stock market with the slight depreciation of the renminbi.

On the one hand, Chinese investors will continue to realize the necessity of pforming domestic savings into overseas assets to diversify investment, leading to the diversion of liquidity in China's stock market.

On the other hand, as RMB denominated assets are expected to become an integral part of the global portfolio, the capital entering China's domestic capital market will also increase steadily, especially in the final stage of the opening of China's capital account, when the restrictions on capital inflows are gradually relaxed.