Multiple Banks Adjust Ratings of Agent-Sold Products Within the Year, Mostly Upwards

A Caixin News Agency reporter's tally found that several banks, including Agricultural Bank of China, China Construction Bank, China Minsheng Bank, and Bank of Ningbo, have successively adjusted the risk ratings of their agent-sold public offering fund products this year. Except for China CITIC Bank, which lowered the risk ratings of two products this time, the vast majority of funds at other banks had their risk ratings adjusted upwards.

A relevant person from the wealth management subsidiary of a listed bank told the Caixin reporter that banks irregularly adjusting the risk ratings of agent-sold public offering fund products is a routine practice. However, objectively, it is related to regulators' continuous strengthening of banks' "seller's duty" and investor suitability requirements in recent years.

They believe that the vast majority of banks raising the risk ratings of public offering funds is also to better remind investors to make decisions cautiously and achieve "self-responsibility for risks." Furthermore, they added that banks have their own rules for adjusting product risk ratings, but they generally also refer to peer products, especially those from major state-owned banks.

How should one view the adjustment of the risk rating of equity-oriented hybrid funds to the highest risk level within the year? Why are there medium-to-high risk products among pension-themed funds?

A macro analyst from a securities firm pointed out to the Caixin reporter that the stock market is inherently a high-risk investment. Against the backdrop of A-shares fluctuating but trending higher within the year, banks' timely "upgrading" of ratings also serves to highlight risks and better protect investors. As for the risk rating of pension-themed funds, it depends on their underlying assets and also on investors' risk appetite. "To pursue high returns, investors must inevitably bear high risks."