Jin Rong Shi Bao·2025-05-20 10:56Core Viewpoint - A new round of deposit rate cuts has been initiated by several major banks in China, leading to a decline in the attractiveness of large-denomination certificates of deposit (CDs) [1][5] Group 1: Deposit Rate Cuts - Major banks including ICBC, BOC, and CCB have lowered interest rates on various deposit products, including demand deposits, time deposits, and notice deposits [1] - The interest rates for large-denomination CDs are expected to fall below 2%, with current rates for 1-year and 2-year CDs at 1.2% and 3-year CDs at 1.55% [3][4] - Compared to last year's issuance, the rates for 1-year, 2-year, and 3-year CDs have decreased by 25 basis points and 35 basis points respectively [1][3] Group 2: Specific Bank Products - BOC's 2025 first phase of personal large-denomination CDs includes terms of 1 month, 3 months, 6 months, 1 year, 2 years, and 3 years, with rates ranging from 0.9% to 1.55% [3] - CCB's 1-year and 3-year large-denomination CDs have rates of 1.2% and 1.55% respectively, with no current offerings for 2-year and 5-year CDs [4] - Smaller banks and private banks are also reducing their large-denomination CD rates, with Tianjin Bank's 3-year and 5-year products now at 2.00% and 1.75% respectively [5][7] Group 3: Industry Trends - Since April, banks have been adjusting their deposit rates to manage costs amid narrowing interest margins, focusing on the liability side of their balance sheets [8] - The adjustments in deposit rates are aimed at improving interest income levels and providing room for further reductions in asset-side rates, thereby enhancing the banking sector's ability to support the real economy [8]