Ten wealth management subsidiaries collectively "call out": The long-term allocation value of A-shares and gold is highlighted; rationally view the net value fluctuations of "Fixed Income+"

Cailian Press, March 25 (Editor: Yang Bin) — In response to the sharp fluctuations in the global financial markets since March caused by the Middle East situation, more than a dozen wealth management companies recently issued “Letters to Investors.” Regarding the volatility in the A-share, gold, and other markets, these wealth management firms are telling investors: view short-term fluctuations rationally and maintain confidence in long-term holdings.

According to incomplete statistics from Cailian Press, as of March 25, at least ten wealth management subsidiaries—ICBC Wealth Management, ABC Wealth Management, BOC Wealth Management, Xingye Wealth Management, Xinying Wealth Management, Everbright Wealth Management, Minsheng Wealth Management, Hangzhou Silver Wealth Management, Nanjing Silver Wealth Management, Huiyin Wealth Management—have issued statements to soothe investor sentiment.

The long-term value of A-shares and gold remains unchanged

Since March, as the Middle East situation has continued to escalate, major asset classes have been impacted. Especially with the Strait of Hormuz blockade pushing oil prices higher, inflation expectations have risen sharply, and the Federal Reserve’s rate cut expectations have weakened, leading to significant declines in assets like A-shares and gold. The Shanghai Composite Index fell to a low of 3,800 points on March 23, and international gold prices dropped 20% from their peak, heading towards $4,100 per ounce.

Major bank wealth management subsidiaries have explained the recent volatility of major assets in “Letters to Investors” and firmly believe in the long-term value of assets like A-shares and gold.

Xingye Wealth Management stated that although the US-Iran conflict has increased uncertainties in supply chains and energy prices, China’s relatively stable geopolitical landscape, complete industrial system, and diversified energy sources mean the actual economic impact is limited. The trend of A-shares is more driven by endogenous factors; while short-term impacts from overseas shocks cause some market fluctuations, these are just part of a slow bull market, and market adjustments are a good opportunity to allocate to quality equity assets.

ICBC Wealth Management also believes that China has sufficient strategic crude oil reserves, diversified import channels, and a complete energy industry chain, ensuring strong energy supply stability. Domestic inflation remains moderate, and oil prices have limited transmission to domestic inflation, with stagflation risks significantly lower than overseas. Current domestic policies remain proactive, with gradually improving production, consumption, and investment data. The phase of stabilized US-China trade relations and the unchanged long-term market logic support a positive outlook.

In the bond market, Hangzhou Silver Wealth Management indicated that the impact on bonds mainly manifests as rising long-term interest rates, while short-term rates are relatively less affected, and overall risks are controllable.

Nanjing Silver Wealth Management believes that the probability of long-term bond yields rising sharply is low. With limited domestic demand recovery and ongoing economic restructuring, the need for loose liquidity to support economic transformation and fiscal expansion remains. Liquidity is expected to stay ample. Fundamentally, PPI is expected to turn positive in Q2, but due to weak domestic demand and the central bank’s support for liquidity, the risk of sustained unilateral adjustments in long-term bonds is small.

Apart from external macro shocks, Huiyin Wealth Management pointed out that the domestic phase of tight liquidity and institutional portfolio adjustments have further amplified market volatility. Factors such as end-of-quarter tax payments, cross-seasonal reserve preparations, and net liquidity withdrawals in open markets have marginally tightened liquidity. As the March 31 insurance industry assessment approaches, some insurance funds and “Fixed Income+” products, aiming to stabilize indicators and prevent withdrawals, have temporarily reduced equity positions, accelerating the market-wide decline.

Regarding the recent sharp correction in gold, Hangzhou Silver Wealth Management believes this objectively reflects market concerns over a strong dollar and tightening liquidity. However, the high-risk levels accumulated earlier have been somewhat alleviated, laying a more solid foundation for future rational pricing:

Nanjing Silver Wealth Management remains bullish on gold, as its two core supports remain unchanged. First, the US fiscal discipline has not substantively improved; US debt approaches $40 trillion and continues to rise, putting long-term pressure on the dollar’s creditworthiness. Second, the long-term trend of global central banks purchasing gold remains intact, providing ongoing support for gold prices.

Huiyin Wealth Management further pointed out that gold is not an ineffective safe haven; rather, due to liquidity shocks and deleveraging pressures, it is prioritized for liquidation as a high-liquidity asset. The short-term pressure on the bond market is more influenced by the sentiment of equity declines and liquidity disturbances, following the adjustment passively, and does not indicate a reversal in the medium-term asset allocation logic.

In recent days, both A-shares and gold prices have rebounded. The Shanghai Composite Index closed above 3,930 points today, and international gold prices returned to $4,500 per ounce.

JiaoYin Wealth Management believes that liquidity is a key signal for market recovery. The current key factor influencing global asset prices is the change in liquidity environment. Investors are advised to monitor the Federal Reserve’s policy moves, global interest rate trends, and the US approach to easing geopolitical conflicts. Once liquidity marginally improves, most assets are likely to recover.

A balanced view on “Fixed Income+” net value fluctuations, awaiting recovery

In recent asset fluctuations, the net values of “Fixed Income+” and options-including wealth management products have experienced more significant declines. Major wealth management subsidiaries have advised investors in their “Letters to Investors” to remain patient and wait for the net value of “Fixed Income+” products to recover.

Xinying Wealth Management stated that short-term declines driven by global market risk aversion caused by events usually do not last long. It is not recommended to blindly sell in panic at this stage. From a 6-12 month mid-term perspective, with economic bottoming and China’s ongoing economic transformation, the resilience of the A-share market remains, and “Fixed Income+” wealth management products can continue to be held.

Agricultural Bank Wealth Management suggests investors stay disciplined, hold “Fixed Income+” and other options-including products patiently, and view investments with a long-term perspective, waiting for asset values to rebound. If possible, they can opportunistically buy options-including products at lower prices to capture future market recovery gains.

Everbright Wealth Management recommends a balanced view of the net value fluctuations of “Fixed Income+” products. In their “Letter to Investors,” they explain that these products consist of a stable income from the “fixed income” part and the potential elasticity of the “+” part. The net value fluctuations are a natural reflection of their asset allocation function. Investors should give the strategy time and patience, as the product’s elasticity and volatility often present opportunities.

Minsheng Wealth Management also pointed out that the net value fluctuations of “Fixed Income+” products are a natural outcome of their asset allocation structure. They hope investors give the strategy time and patience, as market volatility often creates opportunities.

Despite the difficulty of avoiding all assets during global systemic tail risks, wealth management companies remain optimistic about diversified asset allocation to spread risks.

Nanjing Silver Wealth Management believes that sharp fluctuations in individual assets can trigger emotional trading. By allocating assets with low correlation, constructing a “bottom, offense, hedge” portfolio can reduce overall volatility and enhance resilience. During market adjustments, systematic investment or phased buying can effectively lower the risk of concentrated positions at a single point in time, smoothing costs and accumulating quality assets.

Huiyin Wealth Management states that the current difficulty in single-asset allocation makes multi-layered product systems more suitable for risk diversification. For low-risk investors, priority should be given to fixed income products to enhance portfolio stability; for those seeking a balance of stability and elasticity, focus on fixed income-enhanced products, combining “bond foundation + equity enhancement” to smooth volatility and seize recovery opportunities; for higher risk tolerance investors, appropriate attention can be given to hybrid products, capturing medium- to long-term allocation windows after market adjustments.