Spring Festival "Money Line" | Have you received your year-end bonus? How to invest in financial products during the Year of the Horse "Spring Festival" season

As the Spring Festival approaches, how to make your money work for you during the holiday? Recently, several banks and wealth management subsidiaries have released Spring Festival investment strategies, targeting the year-end bonuses of workers.

Many bank wealth management companies have indicated that purchasing designated bank financial products by February 13th (this Friday) will allow investors to enjoy returns during the nine-day Spring Festival holiday. Some banks are also coordinating with evening financial markets to extend their operating hours before the holiday.

Industry insiders say that before and after the Spring Festival is a period when residents have relatively ample funds, as year-end bonuses are distributed in bulk, boosting investment and wealth management demand. Products like deposits and financial management tools serve as key marketing tools for banks and financial institutions during peak seasons.

Last chance to deposit by Friday! Multiple banks and wealth management companies release Spring Festival financial strategies

“The Spring Festival holiday is coming; early planning ensures idle funds don’t stay idle.” Recently, bank wealth management companies have issued Spring Festival investment guides, setting February 13th as the final trading date, allowing funds to grow during the nine-day holiday.

ICBC Wealth Management has launched several open-ended, low-risk products with a risk level of PR1. Although their annualized yields have generally been below 2% since inception, they allow daily subscription and redemption, with relatively low risk. ICBC Wealth Management notes that customers who buy within trading hours (9:00-15:30) by February 13th can enjoy 11 days of returns, with redemption available on the first trading day after the holiday (February 24th).

In addition to low-risk products, some banks’ wealth management companies also offer medium- and low-risk (PR2) products with relatively high annualized yields since inception, included in their Spring Festival interest calculation products.

Minsheng Wealth Management has launched multiple “Cash+” wealth management products that accrue interest during the nine-day holiday. One such product, a risk level R2 fixed-income product, has achieved an annualized yield of 5.80% since inception.

Unlike the aforementioned products that can be redeemed during the trading period, China Merchants Bank Wealth Management has introduced products that accrue interest during the Spring Festival holiday, mainly with minimum holding periods of 90, 180, or 365 days.

Some banks are also extending their operating hours. China Merchants Bank’s wealth management arm has combined with the evening financial market to extend the purchase window for certain cash management products that earn interest during the holiday until 24:00 on February 13th. Meanwhile, short-term debt products are set to be purchased before 17:00 on February 13th.

“During the year-end and beginning of the new year, residents seeking stable returns on their year-end bonuses can consider allocating funds to cash management products, money market funds, or government bonds, in addition to deposits,” said Dong Ximiao, Chief Economist at Zhaolian. He explained that money market funds are relatively flexible with T+1 fund arrival, cash management products typically have terms within one year with various options, and government bonds generally have longer durations, though some can be transferred or sold.

Some banks introduce new structured deposits; smaller banks quietly raise interest rates

“Near the Spring Festival, we advise clients to choose 7-day notice deposits or cash management and open-ended wealth management products based on their idle time and risk preferences, to earn stable returns during the holiday,” said a bank wealth management professional. Recently, there has been an increase in customers purchasing structured deposits at banks.

According to reports from Shell Finance, some banks have announced interest accrual during the Spring Festival period for short-term structured deposits.

Industrial Bank has launched several gold-linked structured deposits, with interest starting on the first or second day of the holiday, with product durations of only 12 or 13 days, covering the holiday period. However, the maximum interest rate is below 2%.

Ping An Bank has also introduced structured products that cover the holiday period. For example, a product linked to the FR007 fixed-rate benchmark has an interest start date of February 14th, with maturity on February 28th, and a maximum interest rate of 2.34%.

“Structured deposits are principal-protected, with lower risk compared to wealth management products, and offer higher interest rates than regular bank deposits,” said an industry insider. They are products that sit between bank deposits and wealth management. Compared to wealth management, structured deposits are still deposits and thus principal-protected; compared to deposits, they can be linked to various assets to enhance returns.

Additionally, Shell Finance learned that some regional small and medium-sized banks have quietly increased their deposit interest rates to attract savers.

For example, a recent WeChat post from Hunan Xinhuang Rural Commercial Bank announced “interest rate adjustments”: for fixed deposits of 30,000 yuan or more, the annual interest rates for 1, 2, and 3-year terms are 1.30%, 1.40%, and 1.75%, respectively; for large certificates of deposit of 200,000 yuan or more, the 1-year rate is 1.40%, and the 2-year rate is 1.80%. Torko Branch of Inner Mongolia Rural Commercial Bank reported that its New Year’s special deposit product’s 1-year interest rate was increased by 15 basis points, with a starting deposit of 100 yuan at 1.4%, and 200,000 yuan at 1.45%.

The period around the Spring Festival is when residents’ funds are relatively abundant. Dong Ximiao said that financial institutions are seizing the opportunity to launch themed financial products related to the New Year, Spring Festival, or year-end bonuses to attract and acquire more customers and better meet their needs. However, many of these products are simply labeled with seasonal tags like “year-end bonus” or “Spring Festival special,” and their core remains deposits or wealth management products. Residents should remain rational in their choices.

Gold investment remains popular; caution needed for volatility

Shell Finance reporters visited several bank branches and found that more customers are purchasing gold investment products and gold accumulation services ahead of the Spring Festival.

“Due to the hot gold market and the festive atmosphere, customer enthusiasm for buying precious metals is high,” a bank teller told Shell Finance. Sales of small investment gold bars are doing well, and some zodiac-themed gold products are also favorites among consumers. However, due to significant price fluctuations, banks have increased risk controls on precious metals trading and strengthened investor education efforts.

Regarding future gold trends, some bank analysts suggest that the long-term logic for gold remains unchanged, with a positive outlook for the year and beyond. In the short term, the market is likely to experience significant volatility, with potential oversold conditions, so patience is advised while waiting for volatility to subside.

For future gold investments, Dong Ximiao recommends that investors neither panic and sell off nor blindly buy the dip. Instead, they should treat gold as a “stabilizer” in their investment portfolio and use scientific asset allocation strategies to manage risk. Specifically, investors can adopt dollar-cost averaging by regularly purchasing a fixed amount of gold weekly or monthly to smooth out short-term price fluctuations. If they already hold positions and are optimistic about long-term prospects, they can add to their holdings in deep dips with reserved funds, but should avoid deploying all their capital at once.

Beijing News Shell Finance reporter Jiang Fan; editor Chen Li; proofreader Wang Xin