Core Viewpoint - The recent reduction in deposit rates by nine joint-stock banks follows the earlier actions of the six major state-owned banks, indicating a broader trend in the banking sector to lower interest rates in response to the People's Bank of China's (PBOC) adjustments to the Loan Prime Rate (LPR) [1][3][6] Group 1: Deposit Rate Adjustments - On May 21, seven joint-stock banks announced a reduction in their deposit rates, with a decrease of 15 basis points for 3-month, 6-month, 1-year, and 2-year fixed deposits, and a reduction of 25 basis points for 3-year and 5-year fixed deposits [1][2] - Specific rates for China Merchants Bank were adjusted to 0.95% for 1-year, 1.05% for 2-year, 1.25% for 3-year, and 1.30% for 5-year deposits, while other banks set their rates at 1.15%, 1.20%, 1.30%, and 1.35% respectively for similar terms [1][2] Group 2: LPR and Monetary Policy - The PBOC announced a decrease in the LPR, with the 1-year LPR at 3% and the 5-year LPR at 3.5%, both down by 10 basis points [3] - Analysts suggest that the PBOC is establishing a transmission mechanism from policy rates to LPR and deposit rates, indicating a coordinated approach to monetary policy [3][4] Group 3: Market Implications - The reduction in deposit rates is expected to enhance the attractiveness of bond assets by lowering the yield advantage of loan assets, thereby improving the configuration value of bonds [3][4] - The larger reduction in deposit rates compared to LPR is seen as a measure to protect bank interest margins while encouraging credit growth [6]

中经记者 慈玉鹏 北京报道 继5月20日国有六大行以及招商银行、光大银行宣布下调存款利率后，《中国经营报》记者统计发现，5 月21日又有七家股份行再次跟进下调存款利率，其中长期存款利率下调幅度大于短期。 记者注意到，截至目前，九家股份制银行普遍对六个月、一年期、二年期定存挂牌利率下调15个基点， 三年期、五年期定存挂牌利率普遍下调25个基点。其中长期存款利率下调幅度更大。 同时，除招商银行与五大行保持一致外，其余8家股份制银行整存整取一年期、三年期、五年期挂牌利 率分别降至1.15%、1.3%、1.35%。 或推动"存款搬家" 东方金诚首席宏观分析师王青表示："截至2025年4月末，活期存款占比34.5%，此次六大行下调存款利 率并带动其他商业银行跟进调整后，或将带动整体存款利率下调0.11—0.13个百分点左右，基本能够覆 盖本次LPR报价下调带动各类贷款利率下行对银行资产端收益的影响，稳定银行净息差。" 从影响看，王青表示，最新数据显示，2025年一季度商业银行净息差为1.43%，较上季度下行0.09个百 分点，再创历史新低，且已明显低于1.8%的警戒水平。本次LPR报价下调带动银行存款利率同步下调， 在 ...

Group 1 - The 21st China (Shenzhen) International Cultural Industries Fair will be held from May 22 to 26, with a significant "policy package" to support six key areas for high-quality cultural industry development [2] - The European Union plans to impose handling fees on small packages entering the EU, with China's Ministry of Foreign Affairs advocating for a fair and transparent business environment for Chinese enterprises [2] - China and the ten ASEAN countries have completed negotiations for the China-ASEAN Free Trade Area 3.0, adding nine new chapters including digital economy and green economy [2] Group 2 - International gold prices rebounded on May 21, with domestic gold jewelry prices surpassing 1,000 yuan per gram, with notable increases from major retailers [3] - Several banks, including Ping An Bank and CITIC Bank, have lowered deposit rates, particularly for medium- and long-term deposits, with some banks suspending five-year term deposits [3] - A surge in A-share buyback and increase plans has been observed, with 394 companies announcing such plans since the second quarter of 2025, a rise of over 60% compared to the first quarter [3] Group 3 - The Hong Kong Hang Seng Index closed up 0.62%, with BYD shares rising over 4% to a new historical high, and southbound funds net buying exceeding 1.4 billion HKD [4] - UBS noted a growing international interest in Chinese assets, highlighting the strategic importance of the Chinese stock market for global investors seeking excess returns [4] Group 4 - Baidu reported Q1 revenue of 32.452 billion yuan, a 3% year-on-year increase, with a notable 42% growth in Baidu Smart Cloud [5] - Xpeng Motors achieved Q1 revenue of 15.81 billion yuan, a 141.5% year-on-year increase, with a projected delivery volume of 102,000 to 108,000 units in Q2 [5] - Weibo's Q1 revenue remained stable at 396.9 million USD, with a 12% year-on-year increase in adjusted net profit [5] Group 5 - The stock price for Naxin Microelectronics was set at 163.15 yuan per share, with a subscription rate of 1.29 times from institutional investors [6] - The U.S. stock market saw declines across major indices, with significant drops in Chinese concept stocks such as iQIYI and Baidu [6]

Core Viewpoint - The fund distribution market is undergoing a significant reshuffle, with fund companies increasingly terminating sales partnerships with banks due to competitive pressures and regulatory compliance requirements [1][2][3]. Group 1: Termination of Partnerships - Ping An Fund announced the termination of its sales cooperation with Xiamen Bank effective April 28, 2024, meaning investors can no longer conduct various fund transactions through the bank [1]. - Hua An Fund also announced it would end its sales cooperation with Bohai Bank by December 31, 2024, to protect investor rights [2]. Group 2: Market Dynamics - Despite banks holding nearly half of the market share in fund distribution, third-party sales institutions and brokerages are rapidly gaining market share, prompting banks to implement fee discounts to attract investors [1][3]. - As of the end of 2024, banks accounted for approximately 45% of the non-monetary fund holdings among the top 100 distribution institutions, but their dominance is being challenged by the rise of third-party sales platforms [3]. Group 3: Revenue Impact - The revenue from fund distribution for banks is under pressure, with significant declines reported. For instance, China Merchants Bank's fund distribution income fell by 19.58% year-on-year to 4.165 billion yuan in 2024 [4]. - The decline in income is attributed to reduced fund fees and a drop in the holdings of equity funds, leading to a decrease in commission income across various banks [4]. Group 4: Strategic Shifts - Banks are shifting from a "price war" strategy to a "value war," focusing on creating differentiated competitive advantages through customized products and services [5][6]. - Smaller banks are increasingly collaborating with various financial institutions to offer diversified distribution products, leveraging regional advantages to meet local customer needs [6]. Group 5: Regulatory Environment - Regulatory scrutiny on bank fund distribution is intensifying, with new guidelines requiring banks to enhance compliance management and risk assessment processes [7][8]. - Instances of regulatory penalties for banks due to violations in fund sales practices highlight the need for improved compliance and risk management frameworks [8].

【深圳商报讯】（首席记者谢惠茜）就在今年首次LPR下调当天，六大国有银行也集体宣布下调存款利 率，这是国有大行今年首轮存款降息。其中，各家国有银行活期存款利率下调至0.05%，1年期整存整 取定期存款利率均跌破"1字头"，下调至0.95%。随后，多家股份行也纷纷"跟进"。 5月21日，截至记者发稿时，已有9家股份制银行跟进下调了存款挂牌利率。除了招商银行已于5月20日 下调之外，平安银行、中信银行、兴业银行、光大银行、浦发银行、民生银行、广发银行、华夏银行共 8家股份制银行均已于5月21日开始执行新的存款挂牌利率。 具体来看，上述8家股份制银行将1年、2年定期利率均调降了15个基点。其中，1年定期存款利率均下调 至1.15%；2年定期存款利率普遍下调至1.20%，民生银行下调至1.15%。3年、5年定期存款利率均下调 了25个基点，分别下调至1.30%、1.35%。 苏商银行特约研究员武泽伟接受记者采访时表示，此次国有大行和股份行集中下调存款利率是政策引导 与市场联动的结果。一方面，央行通过下调LPR，释放适度宽松的政策信号，要求通过利率自律机制引 导商业银行跟进；另一方面，银行主动调整负债成本以缓解净息差压 ...

Core Viewpoint - Nine joint-stock banks in China have followed state-owned banks in rapidly lowering deposit interest rates, focusing on medium to long-term deposits, particularly three-year and five-year terms [2][4][5] Group 1: Deposit Rate Adjustments - As of May 21, seven banks including Ping An Bank and CITIC Bank have announced reductions in deposit rates, with three-year and five-year fixed deposit rates lowered by 25 basis points (BP) [2][4] - The adjusted rates for Ping An Bank are now 0.70% for three months, 0.95% for six months, 1.15% for one year, 1.20% for two years, and 1.30% for three years, reflecting a decrease of 15 BP for shorter terms and 25 BP for longer terms [3][4] - Minsheng Bank has also reduced its deposit rates, with similar decreases across various terms, including a 25 BP drop for three-year and five-year deposits [3][4] Group 2: Market Expectations and Reactions - Investors had anticipated the recent reductions in deposit rates, with no significant rush to lock in rates observed at bank branches [4][5] - The speed of the banks' responses to the need for lower deposit rates aligns with market expectations, indicating a proactive approach to stabilize net interest margins and support the real economy [5][6] Group 3: Implications for Banking Sector - The adjustments in deposit rates are seen as necessary to reduce financing costs for the real economy, with banks needing to lower their liability costs to maintain profitability [5][8] - The current trend shows that the reductions in deposit rates are larger than the Loan Prime Rate (LPR) decreases, which may help banks manage interest expenses and improve their financial performance [8]

Core Viewpoint - The frequent adjustments in the senior management of Shanghai Pudong Development Bank (SPDB) in Guangzhou and Shenzhen reflect the bank's strategic transformation and business optimization efforts amid performance pressures in the Guangdong region [2][6]. Group 1: Management Changes - Liu Hao has been approved as the vice president of SPDB's Guangzhou branch, marking a significant management change [2]. - In the past six months, three new vice presidents have been appointed at the Guangzhou branch, including Liu Hao and Wang Zhenggang, with the latter's qualification approved in March [5]. - The Shenzhen branch has also seen two new vice presidents appointed, indicating a broader trend of management restructuring within the bank [5]. Group 2: Performance Challenges - SPDB's revenue in the Pearl River Delta and the West Coast regions (Guangdong and Fujian) decreased by 1.84% year-on-year, with operating profit turning negative at -6.29 billion yuan [6][7]. - The bank's credit impairment losses surged from 3.26 billion yuan in 2023 to 9.39 billion yuan in 2024, contributing significantly to the decline in profitability [7]. - Employee numbers in the Guangdong region have decreased, with the Guangzhou branch reducing its workforce by 107 to 2,257 employees, while the Shenzhen branch saw a reduction of 101 employees to 1,886 [7]. Group 3: Strategic Focus - SPDB is focusing on major platform construction, technological innovation cooperation, infrastructure connectivity, and collaborative industrial development in the Guangdong-Hong Kong-Macao Greater Bay Area [6]. - As of the end of 2024, the total loan amount in the Guangdong-Hong Kong-Macao region reached 674.186 billion yuan, indicating the bank's commitment to supporting regional development [6].

Core Insights - The personal non-performing loan (NPL) transfer market has seen significant activity recently, with over 50 announcements from banks and consumer finance companies regarding batch transfers of personal NPLs, indicating a supply-demand imbalance and declining asset prices [2][3][4] Group 1: Market Activity - The recent surge in personal NPL transfer announcements includes 8 from Ping An Bank, totaling over 1.8 billion yuan in outstanding principal and interest, with the largest single loan amounting to 715 million yuan [3] - Other banks, such as SPDB and Zhongyuan Bank, have also reported substantial NPL transfer announcements, with SPDB's two announcements involving 2.744 billion yuan and Zhongyuan Bank's four announcements totaling 394 million yuan [3] - Consumer finance companies, including Zhongyin Consumer Finance and Zhaolian Consumer Finance, have contributed to the market activity with 29 announcements, with Zhongyin alone reporting 20 announcements totaling 1.905 billion yuan [3] Group 2: Year-on-Year Growth - In Q1, the batch transfer scale of personal NPLs reached 37.04 billion yuan, an increase of 860% compared to the same period last year, with personal consumer loan NPLs growing by 785.15% and credit card overdraft NPLs by 879.25% [4][5] Group 3: Asset Package Dynamics - A significant portion of the recently announced asset packages are re-listed due to previous failures to sell, indicating a market imbalance where asset prices are decreasing [6] - For example, SPDB's two projects were re-listed with reduced starting prices, and Zhongyin's recent announcements also involved re-listed packages with lowered starting prices [6] - The average discount rate for personal NPL transfers in Q1 was 4.1%, down from previous quarters, while the average principal recovery rate was 6.9%, indicating a downward trend in asset recovery [7] Group 4: Expert Analysis - Analysts suggest that the increase in NPLs is due to heightened pressure on banks to manage their non-performing assets, coupled with a more mature regulatory framework supporting NPL transfers [5] - To address the supply-demand imbalance, banks should improve the selection and pricing of NPLs, while buyers need to enhance their valuation and recovery capabilities [7]

Core Viewpoint - The recent adjustment of deposit rates by major banks marks the seventh round of rate cuts, significantly lowering the cost of bank liabilities and stabilizing profit margins, which is expected to enhance the banks' internal growth capabilities and maintain sound operations [4][7]. Group 1: Deposit Rate Adjustments - As of May 21, nine joint-stock banks have announced adjustments to their deposit rates, following the lead of the six major state-owned banks [5]. - The new rates include a 5 basis point reduction in demand deposit rates and a 15-25 basis point reduction in time deposit rates, with the one-year fixed deposit rate falling below 1% [3][5]. - The current demand deposit rate is now close to zero, and the one-year fixed deposit rate has been set at 1.15% for most banks [5][6]. Group 2: Impact on Banking Sector - The reduction in deposit rates is expected to lower banks' funding costs, thereby stabilizing net interest margins and enhancing their ability to support the real economy [8][12]. - Analysts suggest that the ongoing low interest rate environment may lead to a shift in deposits from large banks to smaller banks, which could affect the competitive landscape [8][12]. - The overall banking sector is entering a low interest rate and low spread cycle, with net interest margins for various types of banks showing a downward trend [10][12]. Group 3: Future Outlook - The adjustments in deposit rates are anticipated to lead to a decrease in overall deposit rates by approximately 0.11-0.13 percentage points, which may help stabilize banks' net interest margins [13]. - Despite the downward pressure on net interest margins, it is expected that the decline will not continue indefinitely, as measures to control funding costs are taking effect [12][13]. - The shift in deposit rates may also influence the allocation of bank assets towards bonds, potentially increasing demand in the bond market [8][13].

Core Viewpoint - A new round of interest rate cuts for large-denomination certificates of deposit (CDs) has begun, with some products' rates falling below 1% for the first time in recent years, indicating a significant shift in the banking sector's approach to deposit rates [1][9]. Summary by Category Interest Rate Changes - Major banks, including state-owned banks, have reduced the annualized interest rates for 1-month and 3-month large-denomination CDs to 0.9%, marking a historic low [1][3]. - The latest issuance by Bank of China shows a reduction of 25 basis points for 1-month, 3-month, 6-month, and 1-year products, while the 3-year product saw a reduction of 35 basis points [3][10]. - Other banks, such as Industrial and Agricultural Banks, have also lowered their rates to 0.9% for similar products [3][6]. Implications for the Banking Sector - The reduction in deposit rates is seen as a strategy to alleviate pressure on net interest margins, which have been declining [10][11]. - Analysts suggest that lowering deposit rates will help banks stabilize their net interest margins and reduce financing costs for the real economy [10][11]. Investor Guidance - Investors are advised to adjust their expectations regarding investment returns and consider a diversified asset allocation strategy in light of the declining interest rates [1][8][11]. - The trend of decreasing deposit rates is expected to continue, prompting investors to seek alternative investment options such as cash management products, money market funds, and government bonds [11].