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China’s wealth management product market shrank by over 2 trillion yuan ($290.2 billion) in the fourth quarter of 2022 as a sharp decline in Chinese bond prices led to outflows.
WMPs totaled 27.7 trillion yuan at the end of 2022, compared to over 30 trillion yuan in the previous quarter and down 4.7% from a year earlier, according to the China Banking Wealth Management Registration and Depository Center.
China’s WMPs returned 880 billion yuan last year, with an average annualized return of 2.1%, versus nearly 4% in 2021, it showed.
Bonds made up 50.4% of the total portfolio at the end of 2022, down from 53.3% at the end of June, the share of cash and deposits rose to 17.5% from 14.1%, while equities remaining at about 3%, showed the report.