Banks aggressively compete for "deposit migration" funds in wealth management.

With the implementation of a new round of deposit interest rate cuts in May this year, banks are engaging in a fierce "customer acquisition war" through expanding channels and reducing fees in their wealth management services. The continued decline in deposit interest rates is attracting more funds to flow into the bank wealth management market. According to data from PuYi Standard, as of the end of June this year, the outstanding balance of the bank wealth management market was 31.22 trillion yuan, an increase of 5.22% from the beginning of the year. Looking ahead to the second half of the year, the industry will face the double pressure of reduced interest rates compressing income and valuation adjustments. "For this reason, bank wealth management subsidiaries are actively dealing with these challenges through product innovation and strategic optimization." According to Lou Feipeng, a researcher at China Postal Savings Bank, on one hand, wealth management companies are promoting low volatility stable products and diversified thematic products simultaneously; on the other hand, they are increasing returns through equity asset allocation and derivatives.