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another bank has adjusted its "change combination" business. recently, bank of communications announced that it would update the maximum limit of quick redemption and payment transfer of the current account profit and current account wealth products. from october 19, the daily cumulative quick transfer and self-initiated payment transfer transaction limit of the above products will be adjusted to 10,000 yuan. on september 22, a beijing business daily reporter learned from the customer service staff of bank of communications that the previous maximum daily quick redemption limit of the current account profit and current account wealth products was 100,000 yuan or 60,000 yuan respectively.

since the beginning of this year, many banks have intensively tightened their "change combination" business. in addition to bank of communications, bank of china, citic bank, minsheng bank, ningbo bank and many other banks have adjusted their "change combination" business, including closing smart transfer-in or transfer-out services, lowering the quick redemption quota, etc. in the view of analysts, the adjustment of the "change combination" business by many banks may be related to compliance requirements. once the redemption of combination products occurs in a concentrated manner, it is easy to cause liquidity risks.

bank of communications lowers the quick redemption quotas for two businesses

recently, bank of communications issued an announcement, announcing the update of the customer service agreement for huodiying and huodifu. the main content is to update the maximum limits of quick redemption and payment transfer of huodiying and huodifu. from october 19, the daily cumulative quick transfer and self-initiated payment transfer transactions of the above products such as remittance, card consumption, cash withdrawal, and online payment will be adjusted to 10,000 yuan.

"if the total amount of quick transfers and payment transfers by a single investor per natural day exceeds the set limit, bank of communications and the wealth management company have the right to refuse to accept the investor's quick transfer or payment transfer business." bank of communications said.

it is understood that huoqiying and huoqifu belong to the "change portfolio" business, and the underlying products are wealth management products sold by wealth management companies and fund products sold by fund companies.

on september 22, a beijing business daily reporter learned from the customer service staff of bank of communications that the underlying assets of huoqiying and huoqifu are 10 wealth management products and 6 fund products respectively. previously, the maximum daily quick redemption limit was 100,000 yuan or 60,000 yuan respectively. from october 19, the maximum daily quick redemption and payment transfer limit are planned to be adjusted to 10,000 yuan.

before the update of the customer service agreement, a beijing business daily reporter noticed that in order to optimize customer experience and smoothly implement service transformation, bank of communications announced that from march 16, it would suspend the provision of contract services for the current profit and current rich accounts to new customers. customers who have already signed contracts can continue to use them normally. as of now, there has been no announcement to resume contract services for new customers.

the "change combination" business mainly involves selling multiple cash management products or money market funds in combination. zhou yiqin, a senior financial regulatory policy expert, believes that once the redemption of the underlying money market funds is concentrated, a "herd effect" is likely to occur. previously, the regulator lowered the upper limit of quick redemption of money market funds and cash management products to 10,000 yuan, mainly to prevent the risk of redemption shocks in money market funds and cash management products.

change combination business faces intensive adjustments

the "change combination" business was once popular. at the end of 2022, after the implementation of the "notice on regulating the management of cash management wealth management products" (i.e., the "new cash management regulations"), the upper limit of the quick redemption limit for cash management products was reduced to 10,000 yuan. in order to meet the liquidity needs of investors, many banks have since upgraded or launched the "change combination" service and increased the upper limit of the quick redemption limit by increasing the number of underlying products.

however, it is worth noting that the "change package" business has increased the quick redemption quota through the expansion of underlying products, but it has also aroused the market's attention to its liquidity risk. he yurui, a researcher at pwc, said that although the "change package" service has become an important tool for banks to attract capital deposits, the real-time redemption function will also bring considerable liquidity challenges to institutions, especially when there are sudden disturbances. if it leads to huge redemptions, it will aggravate liquidity risks.

in order to prevent potential liquidity risks, many banks have intensively tightened their "change packages" this year. in addition to bank of communications, beijing business daily reporters found that many banks, including bank of china, citic bank, minsheng bank, and ningbo bank, have adjusted their "change packages" business, including closing smart transfer-in or transfer-out services and lowering quick redemption quotas.

for example, china minsheng bank previously clarified that the minsheng ruyibao smart purchase and smart transfer services will be closed on may 16; ningbo bank's daily treasure business completed functional transformation on march 15, and the maximum quick redemption limit for a single customer per natural day was adjusted to 10,000 yuan. the ordinary redemption function is not affected. at the same time, the smart transfer-in and transfer-out functions are cancelled; bank of china has suspended the automatic redemption service of huoqianbao for new customers since january 21, and the quick transfer mode will be adjusted from supporting quick redemption of multiple products in one transaction to only supporting quick redemption of one product.

analysts believe that many banks have adjusted their "change combination" business mainly for liquidity risk management and compliance requirements. "banks have lowered the upper limit of the redemption amount of change combination products. such changes have little impact on investors' liquidity. because objectively, investors can actively purchase multiple money funds or cash management products in batches to disperse liquidity pressure, which can also achieve the effect of "change combination" products, but the financial service experience of "change combination" products is more convenient." zhou yiqun suggested that for investors who are accustomed to using higher quick redemption quotas, they can actively adjust their liquidity pressure by actively diversifying their investments in multiple money funds and cash management products.

beijing business daily reporter li haiyan