CICC: Outsourced wealth management demand is experiencing a significant increase, optimistic about two main themes continuing to play out in 2026.

Zhongjin released a research report stating that in the fourth quarter, financial institutions significantly increased their allocation of 465.9 billion yuan to public funds, reaching 1.82 trillion yuan (5.1% position), with both the allocation size and position reaching historical highs. The strong allocation demand, the bank believes, reflects that most financial institutions, facing pressure from "asset shortages" and a smoothed valuation exit background, have made relatively convergent choices on the asset side: firstly, in the era of low interest rates, the high-quality development of the equity market has propelled financial institutions to supplement their equity asset exposure, with continuous allocation increases in mixed secondary bond funds and stock ETFs; secondly, under the demand for absolute returns, fund products that can achieve stable growth or provide underlying liquidity still possess high allocation value. Looking ahead, the bank is optimistic that the above two main trends will continue to evolve in 2026, and financial institutions and fund companies are expected to further expand the breadth and depth of cooperation. The main points of Zhongjin are as follows: Where does the incremental demand for outsourced public funds from financial institutions come from in the fourth quarter? 1) To suppress fluctuations, financial institutions have significantly increased their demand for the allocation of long-term bond funds under the amortized cost method. In Q4, financial institutions increased their allocation of long-term pure bond funds by approximately 181.4 billion yuan to 576.4 billion yuan; the issuance of long-term closed-end financial products also brought about the demand for allocating long-term bond funds. 2) Financial institutions have continued to increase their allocation of fund products with options, gradually raising their equity positions. In the fourth quarter, financial institutions continued to increase their allocation of mixed secondary bond funds and equity ETF products, with the total allocation to hybrid equity funds amounting to 24.9 billion yuan to 175.9 billion yuan (including QDII), and the allocation of mixed secondary bond funds increasing by 31.3 billion yuan to 111.6 billion yuan. Because some financial institutions are still in the window period of developing equity investment research capabilities, they are not inclined to directly allocate stocks in the early stages, and fund products with options have become the choice for most institutions. Thirdly, some fund companies pushed for the momentum of science and technology bond ETF products at the end of the year, exchanging interests with some financial institutions. The new regulations on public fund sales fees have weakened the liquidity attributes of short-term bond funds, while the demand for relatively flexible bond ETF allocations in financial institutions has marginally increased. In Q4, their allocation to bond ETF products (including OTC) increased by 144.6 billion yuan to 315.8 billion yuan. In terms of style, financial institutions prefer medium-low volatility fixed-income products. The bank has compiled statistics on all mixed secondary bond funds that financial institutions held at the end of Q4 25, with an average equity market value position of 14.7%. In terms of equity ETFs, in Q4, financial institutions mainly increased their allocation to stable broad-based indices, and there was also some bottom-line demand for cyclical tracks, while the demand for dividend-related products continued to weaken. In terms of business cooperation, on one hand, most leading large financial institutions maintained large allocations to public funds, with many allocating over 100 billion yuan; on the other hand, some financial institutions that previously had lower allocations to public funds have begun strategically increasing their allocations, with the asset allocation of some institutions exceeding 10%. Risks: Pressure on smoothing valuation correction in financial institutions exceeds expectations, and bond market volatility exceeds expectations.