news

the "change portfolio" financial products that were once popular in the market are gradually being tightened.

according to a recent announcement from the bank of communications, the bank will adjust the maximum limits for quick transfers (quick redemptions) and payment transfers of its two "change portfolio" financial products, "current profits" and "current wealth", from october 19. the daily limit has been reduced to 10,000 yuan from the previous 60,000 yuan or 100,000 yuan.

the so-called "change portfolio" financial product is an investment and financial product formed by a bank combining multiple monetary funds or cash management financial products. the application and redemption are flexible and can be redeemed in large amounts according to the number and amount of invested funds or financial products. , so it is favored by investors. "daily economic news" reporters noticed that bank of communications is not alone. since this year, bank of china, china merchants bank, ping an bank, bank of ningbo and other banks have also made adjustments to their change portfolio business, including reducing the single-day quick redemption limit, turn off smart transfer-in or transfer-out functions, etc.

zhang qiaochu, a researcher at puyi standard, said in an interview with every reporter that banks adjust their "change portfolio" business mainly out of considerations of compliance risks and liquidity risks.short term, the relevant advantages of the "change combination" product will be weakened to a certain extent;but in the long run, such measures help maintain the overall liquidity level of the market and promote institutions to enhance the competitiveness of their currently managed products through measures such as optimizing product design and strengthening risk management.

during the year, many banks adjusted their “change portfolio” business

the reporter inquired about the mobile banking app of bank of communications (sh601328, stock price 7.51 yuan, market value 557.7 billion yuan) and learned that the underlying assets of "current profit" and "current wealth" are 10 cash management financial products and 6 fund products. previously, a single the maximum natural daily quick redemption limits are 100,000 yuan and 60,000 yuan respectively. after october 19 (inclusive), they will be reduced to 10,000 yuan.

transactions such as bank of communications credit card repayment and bank of communications personal loan repayment are not subject to the above restrictions. bank of communications also stated that if customers have higher capital needs, they can redeem them through a single product.

in addition, the number of products that customers can contract for has also been adjusted. originally, new customers who signed up for "customs ying" and "customs fu" after march 16 this year could only sign up for one product under "customs ying" or "customs fu". after this business adjustment, new customers who sign up for "customer cash" after march 16 can sign up to 10 products under "currently ying", and new customers who sign up for "cumulative fortune" after march 16 can sign up for up to 6 "cumulative fortune" products. "launch the product.

"daily economic news" reporters noticed that bank of communications is not alone. since this year, bank of china, china merchants bank, ping an bank, bank of ningbo and other banks have also made adjustments to their "change portfolio" business, including turning off smart transfers or transfer out services, reduce quick redemption limit, etc.

for example, bank of china's "huoqianbao" has adjusted its quick transfer mode from january 21 to support quick redemption of multiple products in one transaction to only support quick redemption of one product. starting from march 15, the maximum quick redemption limit for a single customer on a single natural day for bank of ningbo’s “riribao” has been adjusted to 10,000 yuan, and the smart transfer-in and transfer-out function has been cancelled.

"many banks have adjusted their 'change portfolio' business mainly out of consideration of compliance risks and liquidity risks." zhang qiaochu, a researcher at puyi standards, said in an interview with reporters.

in terms of compliance,after the implementation of relevant policies on cash management products at the end of 2022, the upper limit of quick redemption will be set to 10,000 yuan. the "change package" is actually a product service that integrates a variety of cash management products. by increasing the number of underlying products, the overall quick redemption limit for the product portfolio is capped, and each institution may have certain compliance considerations when adjusting this business.

in terms of liquidity,"change portfolio", a combination product that breaks through the upper limit of quick redemption, can provide investors with a quick redemption limit of hundreds of thousands or even millions of yuan in a single day. however, this type of product also has significant liquidity risks. when unexpected events lead to a large number of redemptions, a large number of rapid redemption quotas may bring greater redemption pressure and liquidity pressure to financial institutions, and may even affect the overall operating order of the financial market.

helps maintain overall market liquidity levels

zhang qiaochu pointed out that the popularity of the "change portfolio" is mainly due to its low risk, strong liquidity, and simultaneous consideration of returns. after the implementation of relevant policies for current management products at the end of 2022, certain adjustments have been made to the upper limit of quick redemptions and the confirmation time for redemptions of current management products, which made it difficult for many investors to adapt for a while, and the subsequent launch of the "change portfolio" "the service indirectly increases the upper limit of the quick redemption limit by increasing the number of underlying products. at the same time, some products can directly provide consumer transfer services without the need to redeem funds, improving the convenient investment experience.

after the "net wave", the market's overall risk preference for financial management is relatively low. the "change portfolio" can well satisfy investors' preferences for low-risk and high-liquidity products. at the same time, it has a higher risk profile than current deposits. income, thus being widely welcomed by the market.

however, while the "change portfolio" financial product has expanded its underlying products to increase its quick redemption limit, it has also attracted attention from the market and regulatory authorities to its liquidity risk. last year, the china securities regulatory commission and the central bank jointly issued the "interim provisions on the supervision of important money market funds", which put forward further requirements for liquidity management of important money market funds.

after all the adjustments mentioned above, “is the "change portfolio" product still attractive to investors?

zhang qiaochu told reporters that in the short term, as various institutions reduce the quick redemption limit of the "change combination", limit the transfer limit, and cancel the smart transfer in and out function, the relevant advantages of the "change combination" product will it has been weakened to a certain extent, and the convenience experience of product financial services has also been reduced, and the overall attractiveness to investors may have declined. for investors who are accustomed to using higher quick redemption quotas, they may actively invest more a cash management product to replace the previous "change combination" product.

“but in the long run, such measures will help maintain the overall liquidity level of the market, promote institutions to improve the competitiveness of their existing products through optimizing product design, strengthening risk management and other measures, and help better maintain the overall market healthy competition and sustainable development," zhang qiaochu said.

daily economic news