Sou Hu Cai Jing·2025-12-02 01:43Group 1 - Recent months have seen a trend of banks, including small and medium-sized banks as well as major state-owned banks, reducing their 5-year fixed deposit and large certificate of deposit products, with small banks leading the way with cuts of up to 80 basis points [1][2] - The current round of deposit rate cuts is primarily a decentralized adjustment by small banks and does not yet reflect a comprehensive reduction led by major state-owned banks [2] - The People's Bank of China (PBOC) is expected to lower interest rates in January to support the 2026 growth target, with indications that deposit rates may decrease before the Loan Prime Rate (LPR) [5][6] Group 2 - As deposit rates decline, some funds are likely to shift from low-yield deposits to equity markets, indicating a potential change in investment behavior [7] - The government is showing unprecedented support for the stock market, with the approval of the first batch of seven dual-innovation artificial intelligence ETFs set to launch on November 28 [8] - The reduction in deposit rates, with current rates at 0.95% for 1-year and 1.05% for 2-year deposits, is expected to encourage residents to invest in the stock market and index funds [10] Group 3 - The dual inflow of resident and institutional funds into the market signifies a significant shift in investment patterns, moving away from traditional bank deposits and real estate towards equity markets [11]