Although the wealth management structural story is intact, analysts and strategists including Modi expect the recent policy moves in China to lead to slower net new money growth in 2027 "and onward".
China’s new regulation (Doc 837) on outbound direct investment (ODI) appears to have broad implications for net new money growth (NNMg) for banks over time, according to a June 10 report by JP Morgan's Harsh Modi, who cited several moving parts that have triggered his downgrade.
"Wealth management, rates, asset quality, capital management and valuations are in varying degrees of shift, which should weigh on the sector for the next few months," says Modi.
