The interest rate cuts, and the bank's wealth management is getting stronger and stronger!

In the wave of financial markets, every fluctuation of interest rates has touched the heartstrings of countless investors.

On May 20, 2025, the central bank's interest rate cut measures were like a stone invested in a calm lake, instantly causing a thousand waves, causing the bank wealth management market to usher in an unprecedented boom.

On the same day, the one-year and five-year loan interest rates of commercial banks were lowered by 10 basis points. One basis point is equivalent to 0.01%, and the seemingly slight change of 10 basis points has created a huge butterfly effect in the financial market. The cut in loan interest rates aims to stimulate corporate financing and residents' consumption and inject vitality into economic growth.

At the same time, deposit interest rates have also opened up a significant downward channel. The interest rates for one-year, three-year and five-year fixed deposits for large-denomination certificates of deposit have all dropped significantly.

The current savings interest rate has ushered in a "freezing point" moment. The five major state-owned banks in Industrial and Commercial Bank of China Merchants Bank and Pudong Development Bank, as well as major joint-stock banks such as China Merchants Bank and Pudong Development Bank, have generally dropped to 0.05%, almost infinitely close to zero interest rates. This extremely low current interest rate means that depositors can idle their funds in current account, and the benefits they can obtain are minimal. From the perspective of asset appreciation, they almost lose the meaning of savings.

Puyi data reveals to us the booming trend of the banking wealth management market. As of the end of May 2025, the total scale of commercial bank wealth management products in the entire market has exceeded 31 trillion yuan, an increase of 1.6 trillion yuan compared with the beginning of the year.

According to the current rapid development momentum, by the end of 2025, the scale of bank wealth management is very likely to exceed 32 trillion yuan, setting a new historical record. The continuous expansion of bank wealth management scale and the hot sales of products, and the continuous decline in interest rates are undoubtedly the most critical driving factors.

Comparing bank interest rates and financial product yield rates, the gap is clear at a glance. According to Puyi Standard monitoring data, in April, the annualized yield of the existing open fixed income wealth management products of wealth management companies reached 3.21% on average; while the yield of closed fixed income wealth management products was even more considerable, with an average level of up to 3.69%.

Compared with the falling bank deposit interest rates, especially the current savings interest rates that are approaching zero, bank wealth management products show strong competitiveness at the income level. This also caused a large amount of funds that were originally sleeping in bank current accounts to flow into financial products, seeking higher returns.

The market's expectations for a moderately loose monetary policy in 2025 have further aggravated the transfer of funds to bank wealth management. Under this expectation, the possibility of interest rates continuing to decline in the second half of the year is extremely high. The downward expectations of interest rates have led to a continuous decline in bond market yields. The yield space of bond investment has been compressed, causing some bond investors to turn their attention to bank wealth management products with lower risks and more considerable returns in order to pursue stable and relatively high returns.

The sluggish performance of the stock market also "added a lot of fire" to the popularity of the bank wealth management market. From the beginning of 2025 to the end of May, the stock market as a whole showed a sideways fluctuation, lacking a significant wealth effect, making it difficult to attract investors to obtain excess returns.

At the same time, market trading volume is also continuing to shrink. This series of phenomena shows that some funds have begun to withdraw from the stock market and instead seek more stable investment channels. Bank wealth management products have become the ideal new destination for this part of funds with their relatively stable returns and low risks.

The cold weather in the real estate market has also boosted the popularity of the bank wealth management market to a certain extent. According to data released by the National Bureau of Statistics and professional intermediary agencies, from March to May 2025, the national second-hand housing prices fell month-on-month for three consecutive months.

Since April, the transaction volume in the real estate market has also shown a continuous decline. Faced with the continuous decline in the prices of second-hand houses, many families planning to buy a house are in a wait-and-see state. This part of the funds originally planned to be invested in the real estate market urgently needs to find a safe and stable "safe haven", and bank wealth management products just meet their needs and naturally become the new destination of this part of the funds.

To sum up, under the combined effect of multiple factors such as interest rate cuts, monetary policy expectations, stock market sluggishness and the cooling of the real estate market, the competitive advantages of bank wealth management products have been fully highlighted, which has triggered a hot situation in the bank wealth management market. In the future, with the continuous changes in the financial market, what development trend will the bank wealth management market show? It is worth our continuous attention and in-depth discussion.

Disclaimer: Any of the above content is from public market information and is for your reference and study and observation only. This content does not constitute suggestions for the purchase, sale or holding of any product and is not used as a basis for your investment. You should make independent investment decisions and bear the capital risks and losses at your own expense. Investment is risky, so be cautious when entering the market.