On August 12th, YuShu Technology announced its offline allotment results, revealing an expanded lineup of wealth management companies participating in offline new share subscriptions:
A total of 53 products from six wealth management companies—Everbright Wealth Management, Ningbo Bank Wealth Management, China Merchants Bank Wealth Management, Postal Savings Bank of China Wealth Management, China Minsheng Bank Wealth Management, and Bank of Nanjing Wealth Management—were granted preliminary allotments, collectively receiving approximately 140,100 shares amounting to 21.1277 million yuan;
Compared with the previous ChangXin Technology allotment, the number of participating wealth management products increased by 24, with 23 products participating in both allotments consecutively. This indicates that offline issuance business has shifted from sporadic attempts to regular configuration within the product pools of some wealth management companies.
In terms of the number of products receiving allotments, wealth management subsidiaries of city commercial banks and joint-stock banks were the main participants in this round:
Ningbo Bank Wealth Management had 24 products allotted, Everbright Wealth Management had 21, with the two together accounting for over 80%; China Merchants Bank Wealth Management had 4, Postal Savings Bank of China Wealth Management had 2, and China Minsheng Bank Wealth Management and Bank of Nanjing Wealth Management each had 1.
Currently, products participating in new share subscriptions commonly adopt a portfolio strategy of "fixed income foundation + equity holdings + offline new share subscriptions." This involves building a foundational position with fixed-income assets like bonds to obtain stable coupon income, while holding a certain scale of stock positions to meet the market value threshold for offline inquiry and subscription, and then overlaying the price difference boost brought by offline new share allotments.
In an environment of low interest rates and narrowing yield space for pure bond strategies, this model is seen by some wealth management companies as a feasible path for "fixed income+" products to enhance returns.
However, the boost from new share subscriptions is not a guaranteed profit.
Statistics show that some products participating in new share subscriptions still recorded negative returns over the past three months or six months. This means that if equity holdings experienced drawdowns during this period due to stock market fluctuations, the resulting losses could offset or even exceed the net value boost contributed by the subscriptions. The final product return still depends on the combined performance of the fixed income, equity, and new share subscription components, not on the subscription segment alone.
Taking the YuShu Technology allotment as an example, even if the new stock's post-listing gain is high, the net value contribution to a single product from this subscription is likely only a few tenths of a percent, due to the relatively tiny allotment size and low allotment rate compared to the product's total assets under management;
In other words, a single subscription has limited pull on a product's net value. The actual value of the subscription strategy relies more on "sustained, multi-project accumulation"
. By frequently participating in multiple new share allotments, the scattered contributions of a few tenths of a percent can gradually accumulate to form an observable boost in returns.
This is also why 23 products participated in two consecutive allotments rather than just dabbling.
According to current rules, after the implementation of the underwriting new regulations in March 2025, bank wealth management products have been included as Class A priority allotment objects, enjoying the same priority allotment rights as public funds and social security funds. This provides the institutional foundation for wealth management companies to participate in offline new share subscriptions on a large scale;
However, the equity holdings themselves are affected by stock market fluctuations, introducing uncertainty into the effectiveness of the subscription strategy. When holdings draw down, the subscription boost may be eroded.
Up to the YuShu Technology allotment, both the number of participating products and the number of wealth management institutions involved in offline subscriptions have increased significantly compared to the first allotment, but single-allotment sizes are limited and return contributions are dispersed;
Subsequently, it will be necessary to observe the actual magnitude of net value boost that subscriptions provide to "fixed income+" products after more new share projects materialize, as well as the overall return stability amid fluctuations in equity holdings.
