Six Wealth Management Subsidiaries Allocated UNITREE Shares: Expansion of IPO Subscription by Bank Wealth Management Products

On August 12, the offline allocation results for UNITREE were announced, further expanding the lineup of wealth management companies participating in offline IPO subscriptions:

A total of 53 products from six wealth management subsidiaries—CEB Wealth Management, Ningyin Wealth Management, CM Wealth Management, China Post Wealth Management, Minsheng Wealth Management, and Nanyin Wealth Management—received preliminary allocations. They were collectively allocated approximately 140,100 shares, with a total value of RMB 21.1277 million;

Compared to the previous Changxin Technology deal, the number of wealth management products participating in this IPO subscription increased by 24. Among them, 23 products participated in both deals consecutively, indicating that offline issuance business has shifted from occasional attempts to routine configuration in the product pools of certain wealth management companies.

In terms of the number of allocated products, wealth management subsidiaries affiliated with city commercial banks and joint-stock commercial banks were the main participants in this round:

Ningyin Wealth Management had 24 products allocated, and CEB Wealth Management had 21, with the two accounting for over 80% of the total; CM Wealth Management had 4, China Post Wealth Management had 2, while Minsheng Wealth Management and Nanyin Wealth Management each had 1.

Currently, products participating in IPO subscriptions generally adopt a combination strategy of "fixed-income foundation + equity base position + offline IPO subscription." They build a base position with fixed-income assets such as bonds to obtain stable coupon income, while holding a certain scale of equity positions to meet the market capitalization threshold for offline inquiry and subscription, thereby adding spread enhancement from offline new share allocations.

In an environment of low interest rates and narrowing returns on pure bond strategies, this model is viewed by some wealth management companies as a viable path to enhance returns for "Fixed Income+" products.

However, enhanced returns from IPO subscriptions are not guaranteed.

Statistics show that the returns of some products participating in IPO subscriptions remain negative over the past three months or six months. This means that if the equity base position withdraws due to stock market fluctuations during this period, the resulting losses may offset or even exceed the net asset value (NAV) increase contributed by IPO subscriptions. The final return of the product depends on the comprehensive performance of fixed income, equity, and IPO subscriptions, rather than IPO subscriptions alone.

Based on calculations for the UNITREE deal, even if the new stock lists with a significant gain, the allocation scale for wealth management products is extremely small relative to their total assets under management, and the allocation rate is very low. The NAV contribution to a single product from this IPO subscription may be only a few basis points;

In other words, the pull on product NAV from a single IPO subscription is limited. The actual value of the IPO subscription strategy relies more on "continuous, multi-project accumulation." By frequently participating in the allocation of multiple new shares, the scattered contributions of a few basis points can be gradually accumulated to form observable return enhancement.

This is also why 23 products participated in two consecutive deals rather than just dipping their toes in.

According to current rules, after the implementation of new underwriting regulations in March 2025, bank wealth management products have been included as Class A priority allocation objects, enjoying the same priority allocation rights as public mutual funds and social security funds. This provides an institutional foundation for wealth management companies to participate extensively in offline IPO subscriptions;

However, the equity base position itself is affected by stock market volatility, creating uncertainty in the effectiveness of the IPO subscription strategy. When the base position withdraws, the return enhancement from IPO subscriptions may be eroded.

As of the UNITREE deal, both the number of products and the number of institutions from wealth management companies participating in offline IPO subscriptions have risen significantly compared to the first deal. However, the allocation scale per deal is limited, and return contributions are dispersed;

Going forward, it remains to be observed how much IPO subscriptions actually enhance the NAV of "Fixed Income+" products after more new share projects are implemented, as well as the overall stability of returns amid fluctuations in the equity base position.