Xi Niu Cai Jing·2025-05-20 01:41Group 1 - The core point of the articles is the collective reduction of RMB deposit rates by major Chinese banks, including China Bank, Agricultural Bank, Industrial and Commercial Bank, China Construction Bank, Postal Savings Bank, and Bank of Communications, effective May 20 [1][2][3][4] - The interest rate for demand deposits has been lowered by 5 basis points to 0.05% [1][2][3][4] - The fixed deposit rates for various terms have been adjusted, with 3-month, 6-month, 1-year, and 2-year rates down by 15 basis points to 0.65%, 0.85%, 0.95%, and 1.05% respectively [1][2][3][4] - The 3-year and 5-year fixed deposit rates have been reduced by 25 basis points to 1.25% and 1.3% respectively [1][2][3][4] - The 7-day notice deposit rate has also been decreased by 15 basis points to 0.3% [1][2][3][4] Group 2 - The reduction in deposit rates is expected to drive a shift in deposits towards bank wealth management products, which have seen a resurgence, reaching a scale of 31 trillion yuan [5] - The increase in bank wealth management products is attributed to the decline in bond market interest rates, the "deposit migration" effect, and adjustments in bank sales strategies [5] - The anticipated further reduction in deposit rates may lead to an increase in bank wealth management products, with projections suggesting a potential growth to 33 trillion yuan within the year [5]