The reform of public offering fees affects bond fund investment banking wealth management with "mixed feelings"

With the formal implementation of the third phase of public fund fee reform, the "7-day redemption-free" policy for public bond funds has become history, leading to an increase in short-term redemption costs. For banks managing a large amount of bond allocations in wealth management, this can be described as a "double-edged sword." According to a reporter from the Shanghai Securities News, the "joy" for bank wealth management companies lies in the fact that compared to bond funds, wealth management products do not charge redemption fees, highlighting their liquidity advantage. However, the "concern" is that the trading costs for investing in bond funds have increased, making the previous frequent buying and selling of bond funds no longer feasible. Bank analysts believe that the model of bank wealth management companies allocating public funds will shift from "short-term arbitrage, liquidity hedging" to "long-term holding, toolized usage." In addition to the low interest rate environment, strengthening equity investments to increase returns is becoming increasingly important for bank wealth management companies. These companies should enhance their own equity investment capabilities or collaborate with public institutions to enhance the stability of product returns and meet the diversified needs of investors.