Mei Ri Jing Ji Xin Wen·2025-06-17 13:21Core Viewpoint - The long-term large-denomination certificates of deposit (CDs) are rapidly disappearing from the market due to various factors, including narrowing bank interest margins and changing regulatory environments [1][2]. Group 1: Industry Trends - The availability of 3-year and 5-year large-denomination CDs has significantly decreased, with many banks only offering CDs with a maximum term of 2 years [1]. - The net interest margin for commercial banks in China has dropped to 1.43%, a historical low, prompting banks to reduce high-cost liabilities like large-denomination CDs [1][2]. - The expectation of declining interest rates is increasing, leading banks to withdraw long-term large-denomination CDs to avoid locking in high-interest liabilities [2]. Group 2: Regulatory Influence - Regulatory bodies are guiding banks to lower deposit costs through market-oriented mechanisms, aiming to maintain reasonable profit and net interest margin levels [2]. - Banks are encouraged to balance scale and efficiency, with many identifying the reduction of long-term deposits as a key strategy for adjusting their liability structure [2]. Group 3: Customer Adaptation - Customers are advised to shift from a single savings model to a diversified asset allocation approach to adapt to the changing market [3]. - It is essential for customers to recognize the scarcity of high-yield assets and avoid blindly pursuing high returns, which could lead to investment risks [3]. - Building an investment portfolio should consider individual circumstances, including investment experience, return expectations, risk tolerance, and liquidity needs [3].