At the beginning of the new year, bank wealth management institutions have intensively lowered the fees for wealth management products. Nanyin Wealth Management recently announced a reduction in fixed management fees and sales fees for its Yuewen series products. At the same time, Zhongyuan Bank also announced adjustments to the rates of its three wealth management products. Xue Hongyan, a special researcher at Su Shang Bank, introduced that several banks and wealth management companies have launched a phased fee reduction wave, actively lowering the relevant fees of their products to benefit investors, aiming to enhance the attractiveness of their products during critical time windows, attract capital inflows, and expand market share. In the current context of banks' "deposit relocation", the reduction of fees is becoming an important lever for accepting savings funds. Industry experts point out that the reduction of wealth management product fees by wealth management companies is a comprehensive reflection of intensified industry competition in a low interest rate environment, in order to attract customers to invest and undertake "deposit moving" funds, and to strive for a "good start" performance. The intensive fee reduction actions of bank wealth management companies are driven by multiple factors. Xue Hongyan believes that the direct reason is to actively seek funds from investors for asset reallocation during the period of abundant funds at the beginning of the year. On a deeper level, this is a strategy adopted by institutions to maintain the relative competitiveness of their wealth management products in an environment where the overall yield is facing downward pressure. At the same time, this also reflects that the wealth management market has entered a stage of more emphasis on stock competition from high-speed growth, and institutions use price measures to stabilize or expand their market position. In recent years, China's banking wealth management market has developed rapidly, and industry competition has been intensifying. As of the end of the third quarter of 2025, there were a total of 43900 products in existence in the entire market, an increase of 10.01% year-on-year; The existing scale is 32.13 trillion yuan, an increase of 9.42% year-on-year. Among them, the existing scale of wealth management products of wealth management companies accounts for 91.13% of the entire market. In this context, reducing fees has become a means for wealth management companies to cope with industry competition. Li Guangzi, Director of the Banking Research Office at the Institute of Finance, Chinese Academy of Social Sciences, stated that reducing fees does not mean a "one size fits all" approach to all products, but should be targeted towards specific customer groups, channels, or time periods to improve specificity. Xue Hongyan believes that such discounts usually have clear terms or conditions set, reflecting the nature of their short-term marketing strategy, rather than permanent rate changes. For wealth management companies, "coupon prices" or simple fee reductions are unsustainable. In the future, a floating management fee linked to performance can be adopted to bind one's own interests with those of investors, in order to achieve commercial sustainability. The fundamental way for wealth management companies to get rid of homogenized rate competition is to build a core competitiveness that goes beyond price. Xue Hongyan believes that this requires continuous strengthening of investment research capabilities, especially the ability to obtain stable returns in complex market environments; At the same time, efforts should be made to develop differentiated products that truly meet the needs of different investors; In the long run, a customer-centric service system should be established to provide professional asset allocation advice and full process companionship, enhance customer trust and stickiness, and win the market. The fee rate is only one factor for investors when choosing financial products, and other factors cannot be ignored solely based on the fee rate. In the low interest rate environment of recent years, it is difficult for investors to increase their returns by simply placing their funds in a current account. How to make their living money not only avoid depreciation in the current account, but also balance flexibility and a certain level of profitability? Wang Liting, a researcher at Puyi Standard, believes that the first step is to segment and plan the use of funds, distinguish between idle money and active money, and then carry out hierarchical management. For example, using short-term daily expenses and emergency funds as core working capital, allocating them to high liquidity products; Use the funds from the mid-term plan as buffer funds to allocate products with moderate liquidity and slightly higher returns; Long term idle money can be used to pursue higher returns, and a certain lock up period is acceptable. In live money management, a diversified cash management portfolio can be constructed, by dispersing the allocation of different types of products and leveraging their strategic and revenue differences to achieve complementary advantages and obtain more robust comprehensive returns. In terms of preventing investment risks, Li Guangzi suggests that investors need to comprehensively consider their own risk preferences, as well as the profitability, safety, and liquidity of wealth management products, and choose wealth management products that are suitable for their own characteristics, in order to strike a balance between risk and return; When investing, it is advisable to prioritize "fixed income+" and cash management products, and pay attention to the underlying assets and historical fluctuations of the products; Long term allocation can consider regular dividend based or setting up products with the shortest holding period to better balance liquidity and returns. (New Society)