Everbright Wealth Management product experiences massive redemptions, with annual return rate dropping to -14.27%

Pan Yue Mapping

Affected by the recent adjustments in the stock and bond markets, the bank wealth management market has seen increased volatility, with many medium- and low-risk fixed-income products experiencing net value retracements and declining yields. Among them, a product under China Everbright Wealth Management Co., Ltd. (referred to as “Everbright Wealth Management”) has attracted particular attention, as its net value has significantly corrected over the past three months, and its annualized yield has dropped to -14.27% this year.

Significant Drop in Yield

The reporter found that a product under Everbright Wealth Management, named “Sunshine Jin Zeng Li Stable Daily Purchase Custom (90-day Minimum Holding) No. 2 A,” has shown negative growth in net value for three consecutive months since 2026. In particular, starting from January 20 this year, the net value trend has begun to decline significantly. As of March 24, the product has experienced a net value retracement of 3.2% this year, ranking among the top for retracement among all fixed-income products.

In addition to the significant net value retracement, the yield of this product has also dropped sharply recently, resulting in severe losses this year. According to the Everbright Wealth Management official website, as of March 26, the annualized yield for the last month of this product was -8.35%, and the annualized yield for the last three months has fallen to -13.15%. The annualized yield since 2026 has further declined to -14.27%. In 2025, the product’s annualized yield was 4.73%, but following a significant decrease this year, as of March 26, the annualized yield since inception is only 1.15%.

This relatively low-risk, fixed-income product from Everbright Wealth Management was established in December 2024, with an initial fundraising scale of 10 million yuan. The initial performance benchmark was set at 2.05% to 2.55%. After three adjustments, the latest performance benchmark has been lowered to 1.15% to 2.05%, with the maximum reduction reaching 90 basis points.

The decline in yield of this product this year is uncommon among low-risk public wealth management products in the market. In stark contrast to the significant drop in the product’s yield, the Everbright Wealth Management website states in the product introduction that the “Sunshine Jin” series products are positioned under the company’s “fixed-income” product line, primarily focusing on “absolute return” strategies.

If the annualized yield of this product continues to decline this year, the “absolute return” of this product will be difficult to guarantee. Additionally, there is a possibility that the product may be terminated early or liquidated, creating uncertainty for investors who continue to hold this product.

The investment report for the fourth quarter of 2025 shows that by the end of the period, the product’s scale was only about 169,800 yuan, with demand deposits making up 37.53% of the top ten holdings. In contrast, at the end of June 2025, the product’s scale was still 5.246 million yuan, and its top ten holdings included a private equity asset management product in addition to demand and time deposits. By the end of the first quarter of 2025, the product’s scale was 7.4543 million yuan, and its top ten holdings included only one demand deposit, with the others being private equity, public equity, and other asset management products and bonds.

Regarding the current operation of this product, the reporter inquired with Everbright Wealth Management as an investor. The response indicated that in January 2026, the product scale dropped from previous rapid redemptions to about 10,000 yuan. Due to redemption confirmation rules and the basic fee accrual of the product, this caused a significant drop in the product’s net value. The fluctuations in the product’s net value are mainly due to large redemptions and are considered a normal short-term phenomenon, with the product currently operating normally.

An individual from the fixed-income research department of a wealth management company informed the reporter that this product now has a remaining scale of about 10,000 yuan, making it a typical “mini liquidation edge product,” with the remaining scale far below the operational threshold for conventional wealth management products, and its management costs have exceeded its returns, significantly diminishing its commercial value for continued operation. Furthermore, the current asset allocation is extremely singular, with only demand deposits, resulting in a concentrated risk exposure and poor resistance to volatility.

“The large-scale redemptions by investors also reflect that this product’s returns have not met expectations, and the net value retracement has led to a loss of trust, with remaining funds decreasing significantly. The product may be terminated early or liquidated, which for institutions also means clearing out low-efficiency assets,” the individual believes.

In addition to the “Sunshine Jin Zeng Li Stable Daily Purchase Custom (90-day Minimum Holding) No. 2 A” product, other products from Everbright Wealth Management have also experienced net value retracements and declining yields recently. The reporter found that a product named “Sunshine Jin Zeng Li Daily Purchase (One Year Minimum Holding) A” has an annualized yield of -1.21% for the last month, and there has been a slight decline in net value since early March. This is a medium-risk, fixed-income product. Additionally, a product named “Sunshine Jin Zeng Li Stable Le Xiang Daily Purchase No. 5 (7-day Minimum Holding) A” has an annualized yield of -1.32% for the last month, and its net value has also shown a slight decline in March.

Industry insiders believe that for Everbright Wealth Management, the decline in net value and yields of its low-risk fixed-income products this year primarily stems from a lack of flexible volatility management mechanisms. As a medium- to low-risk product, the Sunshine Jin series should focus on high liquidity and low volatility fixed-income assets. However, the occurrence of a product with a maximum retracement exceeding 3.2% over three months indicates that the company has not established a comprehensive net value volatility early warning mechanism, insufficiently anticipated potential risks such as fluctuations in market interest rates and credit bonds, and failed to timely adjust the position structure to hedge risks.

Everbright Wealth Management has stated that the short-term net value retracement of the Zeng Li Stable series and Zeng Li Stable Le Xiang series is mainly affected by fluctuations in bond market interest rates and changes in market liquidity. This is considered a normal phased fluctuation after the transition to net value and does not arise from product credit risk or abnormal risk ratings of underlying assets.

Regarding the measures to address the net value retracement of multiple products, Everbright Wealth Management replied that the company will subsequently work on optimizing product performance in a complex market environment by enhancing diversified allocation capabilities, solidifying risk control disciplines, and deepening investor engagement.

Downward Adjustment of Multiple Product Performance Benchmarks

Everbright Wealth Management is a wholly-owned subsidiary of China Everbright Bank (601818.SH) and one of 32 licensed wealth management subsidiaries. By the end of 2025, the remaining scale of Everbright Wealth Management’s wealth management products was approximately 1.95 trillion yuan, ranking among the top in wealth management subsidiaries.

In the face of the current macro background of continuously declining deposit interest rates and falling bond yields, leading wealth management subsidiaries, including Everbright Wealth Management, Xingyin Wealth Management, Zhao Yin Wealth Management, and Zhongyou Wealth Management, have recently made significant downward adjustments to the performance benchmarks of multiple wealth management products.

In the past two months, Everbright Wealth Management has adjusted its “Sunshine Jin Zeng Li Stable Daily Purchase” series of products, with fixed interval products generally lowered by 30-80 basis points. Some products have directly canceled fixed values and are now fully linked to the China Bond Index. Industry insiders believe these adjustments are partly to align with the new regulations on information disclosure for asset management products set to be implemented in September 2026 (which require continuity of benchmarks and prohibit arbitrary adjustments) and also to some extent clear the high-yield burden of existing products, matching the current market yield center of 2.1% to 2.5%.

This year, yields of various types of wealth management products in the market have generally declined. Data from Puyi Standard indicates that as of the end of February 2026, the annualized yield for cash management products over the past month was 1.25%, a slight decrease from the previous month; the average annualized yield for fixed-income products over the past month was 2.16%, a significant decrease of 146 basis points; the average annualized yield for mixed and equity products over the past month was 1.30% and 5.83%, respectively, also showing a downward trend.

Huabao Securities stated in a recent research report that the performance benchmarks of wealth management subsidiaries must detail the calculation basis and be strongly correlated with investment strategies, underlying assets, and market performance, and should not be adjusted arbitrarily. Traditional fixed-type benchmarks face compliance pressure due to a lack of market logic and susceptibility to frequent adjustments. Meanwhile, as the yields of fixed-income assets continue to decline, it has become challenging for wealth management assets to support previously high fixed benchmarks. Coupled with regulatory rectifications of “yield ranking” and other irregularities, the industry is being compelled to shift towards more prudent and realistic disclosures of yield expectations.

In addition to requirements from regulatory bodies, industry insiders believe that Everbright Wealth Management’s recent frequent downward adjustments of product performance benchmarks reflect that the company has not truly achieved a match between risk and return during its transition to net value. Moving forward, it still needs to strengthen its judgment and investment capabilities in risk anticipation, volatility response, and refined asset allocation to better meet investors’ needs for stable wealth management.

Everbright Wealth Management responded that regarding position control, the company will strictly manage duration and leverage, shorten the portfolio duration, reduce interest rate risk, and maintain leverage within regulatory compliance ranges. Secondly, it will strengthen credit screening, prioritize allocations of high-rated and high-liquidity assets, and strictly control the proportion of low-quality credit bonds. Thirdly, it will dynamically adjust positions to hedge risks, flexibly adjust positions based on the market, and increase allocations of certificates of deposit, short-term bonds, and other stable-priced assets to smooth volatility.