As traditional fixed income returns become increasingly difficult to sustain, equity markets are emerging as a new battleground for wealth management firms seeking alpha returns. Data from the Shenzhen Stock Exchange shows a sharp increase in IPO subscription bids by wealth management firms. By April 23, the number of bids placed by just three firms—Ningbo Bank Wealth Management, Industrial Bank Wealth Management, and Everbright Bank Wealth Management—had surged 87% within just one and a half months. At the same time, wealth management firms are expanding their presence in equity markets through various channels, including private placements, cornerstone investments in Hong Kong IPOs, and index-based investments.
Industry analysts believe this trend is driven by declining yields in bank wealth management products, policy incentives, and the return-enhancing effect of equity strategies such as IPO subscriptions. The increased allocation to equity assets in the underlying investments of wealth management products, including some low-risk products, is a direct reflection of this chain reaction.
Wealth management firms have become a notable "buy-side" force in the IPO market. Since being classified as "Category A investors" and gaining approval to participate in offline IPO subscriptions in March 2025, Everbright Bank Wealth Management, Ningbo Bank Wealth Management, and Industrial Bank Wealth Management have all successfully taken part in new share offerings and received allocations.
According to Shenzhen Exchange data, as of April 23, these three firms had placed a total of 187 bids, up 87% from 100 bids on March 6. Among them, Ningbo Bank Wealth Management was particularly active, submitting 114 bids alone and receiving an allocation of 328,600 shares. Industrial Bank Wealth Management and Everbright Bank Wealth Management placed 52 and 21 bids, receiving allocations of 236,200 shares and 44,700 shares, respectively.
This growth is even more evident in specific cases. For example, in the recent listing of Sj Semiconductor Corporation (688820.SH) on the STAR Market, Ningbo Bank Wealth Management not only secured an allocation but also ranked first among bank wealth management firms in both the number of participating products and the allocation amount. As of April 2026, Ningbo Bank Wealth Management had directly participated in 54 new share offerings on the Shanghai and Shenzhen exchanges, with 50 successful allocations—a success rate of 93%. The average first-day gain of the allocated new shares reached 218%, with Sj Semiconductor Corporation surging 289% on its debut.
Why has the enthusiasm for IPO subscriptions among wealth management firms heated up so quickly? According to analysis by experts, the fundamental driver lies in regulatory breakthroughs. In March 2025, regulators officially included bank wealth management products in the Category A priority allocation group for IPOs, granting them the same allocation rights as public funds. This move dismantled long-standing institutional barriers between wealth management firms and capital markets.
From the perspective of first-day stock performance of newly listed companies, the profitability of IPO subscriptions has significantly improved, further fueling the participation of wealth management products. Wind data shows that since 2025, 160 companies have gone public in the A-share market, with new listings generally performing strongly—averaging a first-day gain of 233.96%. A growing number of bank wealth management products have appeared in the allocation lists of IPOs for companies such as Chaoying Electronics, Daming Electronics, Fengbei Biology, Hengkun New Materials, Biocytogen, and Muxi Holdings.
Disclosed information indicates that some wealth management firms have achieved average first-day gains for allocated new shares that far exceed market benchmarks, with individual stocks occasionally rising severalfold. Against the backdrop of persistently declining fixed income yields—where the average payout rate of bond-based products has fallen below 2.3%—IPO subscriptions have become one of the optimal strategies for wealth management firms to enhance returns with low volatility and risk. A success rate of nearly 90% implies minimal risk and strong return certainty, making it natural for institutions to rush in.
In fact, wealth management firms’ equity strategies extend beyond IPO subscriptions. Driven by policies encouraging long-term capital inflows, support for the real economy, and adaptation to low-interest-rate environments, private placements have become another key focus. Since 2026, China Post Wealth Management participated in an RMB 1.19 billion private placement by Ningxia Orient Tantalum Industry Co.,Ltd. (000962.SZ), receiving an allocation of RMB 30 million. Jiangsu Bank Wealth Management, leveraging its bank’s branch network, took part in a private placement by Jiang Su Suyan Jingshen Co.,Ltd. (603299.SH), securing nearly RMB 50 million. Bank of Beijing Wealth Management, through customized private products, participated in a private placement by Baic Bluepark New Energy Technology Co.,Ltd. (600733.SH), achieving three industry firsts: the first use of a high-concentration single-asset wealth product to invest in corporate equity, the first use of a private product to participate in a listed company’s private placement, and the first application of a single-asset private product in a private placement project.
Experts attribute wealth management firms’ active involvement in private placements to their proactive response to the "asset shortage" in fixed income markets. Private placements, as a structured strategy involving discounted subscriptions and lock-up periods, can deliver significantly higher returns than bonds within a relatively controlled risk framework. Policy support has also played a role: a multi-agency implementation plan issued in early 2025 explicitly allowed bank wealth management products to participate in private placements, officially opening the policy channel. Investing in private placements of leading companies in sectors like technology and advanced manufacturing aligns not only with return-oriented business logic but also with regulatory efforts to channel long-term capital into the market and support the real economy—creating a synergy between policy incentives and commercial rationale.
Additionally, cornerstone investments in Hong Kong IPOs, broad-based index ETF allocations, and investments in private equity funds have become key avenues for wealth management firms to explore equity markets. ICBC Wealth Management disclosed that in 2025, it participated in over 30 investments in new asset types, including Hong Kong IPOs and public REIT subscriptions.
A representative from China Post Wealth Management noted that the firm has so far participated in more than 150 A-share private placement projects, covering multiple strategic emerging industries. Since 2024, it has also been actively involved in the Hong Kong IPO market, investing in companies such as Midea Group, Contemporary Amperex Technology Co., Limited, Sanhua Intelligent Controls, Chery Automobile, and Montage Technology, consistently generating solid returns for its "fixed income plus" and hybrid products.
Experts describe wealth management firms’ participation in Hong Kong IPO cornerstone investments as a "strategic positioning during a window of low valuations." Data from some institutions is compelling: multiple cornerstone investments in Hong Kong IPOs have all yielded positive returns, with some targets doubling in value. At a deeper level, Hong Kong valuations remain historically low, while the city’s ongoing optimization of listing mechanisms for tech companies has accelerated the pace of quality hard-tech listings, providing ample targets for cornerstone investments. Entering as cornerstone or anchor investors not only offers a certainty premium via priority allocations but also enables firms to build a second source of returns beyond fixed income, leveraging the long-term growth narrative of tech sectors.
Behind wealth management firms’ aggressive push into equities lies the fundamental pressure of a low-interest-rate environment. Since 2024, domestic bond yields have continued to decline, with the 10-year government bond yield once falling below 2%.
A representative from Ningbo Bank Wealth Management noted that, given the recent decline in bond market rates, equities remain relatively attractive compared to bonds. Over the medium to long term, as China’s economy transitions to high-quality development, many listed companies are seeing improved returns, and structural opportunities persist in equity markets. The firm believes there is significant growth potential for equity-related businesses. Increasing allocations to equities can help enhance clients’ medium- to long-term returns. By adopting a macro asset allocation approach and creating diversified portfolios blending stocks and bonds, wealth management firms can become a preferred choice for clients’ long-term investments, offering a suitable pathway for steady participation in capital markets and sustainable returns.
Another city commercial bank-affiliated wealth management firm pointed out that strengthening equity investments is an inevitable response to the "low interest rate and deposit migration" trend, aimed at adding "return flexibility" to traditionally fixed income-focused products.
China Post Wealth Management stated that it will continue to strengthen its equity investment capabilities, providing investors with quality channels to benefit from industrial growth and delivering more stable and diversified returns.
This shift is already visible in action. Wealth management firms are significantly increasing their research activities on listed companies. Wind data shows that in the first quarter, they conducted 429 research visits involving 251 companies. As of April 23, 2026, 26 bank wealth management firms had carried out a total of 539 research visits year-to-date. Meanwhile, the Quarterly Report on China’s Banking Wealth Management Market (Q1 2026) indicates that the share of hybrid products in outstanding wealth management product scale rose to 3.07% in the first quarter, while the proportion of underlying assets allocated to public funds increased to 5.7%, up 0.6 percentage points from the end of 2025.
Notably, even some low-risk wealth management products have begun quietly increasing their equity allocations. Performance reports reveal that several R2-risk or lower-risk products managed by multiple wealth management firms now include equity assets—such as ETFs and stocks—in their top ten holdings. In some cases, direct equity investments account for nearly 30% of a product’s portfolio.
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