Core Viewpoint - After 2023, there is a noticeable trend of residents' deposits flowing back into wealth management products due to the rapid decline in deposit interest rates, reversing the previous trend of "deposit migration" observed after 2018 [1][2]. Group 1: Deposit Trends - Since 2018, there has been a significant shift of residents' wealth back to deposits, which can be seen as a reversal in wealth allocation [1]. - In 2023, the proportion of residents investing in wealth management products has started to rise again, although the rebound is limited, with deposit allocation still maintaining a high level of around 70% [1]. Group 2: Benefiting Products - As funds flow out of deposits, low-risk bank wealth management products (mainly fixed income) and money market funds are the primary alternatives for residents [2]. - Bond funds may attract some capital inflow when the bond market performs well, while the insurance industry is expected to show accelerated growth in 2024, and the trust market has also shown signs of recovery in recent years [2]. - The trend of residents diversifying their investments into various wealth management products is expected to continue, as deposit rate cuts are likely to outpace the decline in interbank market rates [2].

Core Insights - The decline in deposit rates is driving banks to promote wealth management products as a key asset allocation choice for residents [1][2] - Banks are adopting a multi-faceted approach to attract more funds, including lowering fees, innovating products, expanding channels, and increasing product holding limits [1][2][4] Group 1: Market Dynamics - As deposit rates continue to decrease, the yield on bank wealth management products remains relatively stable, with some products showing impressive performance [2] - The total scale of the bank wealth management market has surpassed 31 trillion yuan as of June 19, 2025 [2] - Banks are expanding their distribution channels by increasing the range of selling institutions, including moving from joint-stock banks to city commercial banks and rural commercial banks [2] Group 2: Product Innovation - Several wealth management subsidiaries are launching "micro-rights" series products, which invest no more than 5% of net assets in equity assets, aiming to reduce risk while seeking appreciation [3] - For example, Qingyin Wealth Management recently introduced a product with a minimum investment of just 1 yuan and an annualized performance benchmark between 2.6% and 3.6% [3] - Wealth management subsidiaries are also reducing fees to enhance market competitiveness, with several institutions initiating fee reductions since June [3] Group 3: Strategic Responses - The multi-dimensional layout of wealth management subsidiaries is a strategic response to the decline in deposit rates, aiming to stabilize existing customer resources while capturing new funds [4] - The growth momentum of the bank wealth management market is strong, driven by the dual forces of declining deposit rates and the trend of "deposit migration" [5] - Head institutions are expanding market share through scale advantages, while smaller institutions need to focus on regional characteristics or niche markets for differentiation [5] Group 4: Future Outlook - Wealth management subsidiaries are actively exploring new growth points by developing cross-border asset allocation products and enhancing smart investment advisory services [6] - The future innovation direction will focus on optimizing diversified asset allocation strategies, deepening the innovation of dividend products, and developing medium to long-term closed-end products [6] - The bank wealth management market is expected to exceed 33 trillion yuan by 2025, with a shift from scale-driven to value-creating business models being essential for success [6]

Core Viewpoint - The decline in deposit interest rates has led to a significant "deposit migration" phenomenon, with non-bank deposits experiencing substantial growth as investors seek better returns in alternative financial products [1][2][3]. Group 1: Deposit Trends - As of the end of May, the balance of RMB deposits reached 316.96 trillion yuan, a year-on-year increase of 8.1%, with nearly 2.2 trillion yuan added in the month, which is 500 billion yuan more than the same period last year [2]. - Non-bank deposits increased by nearly 1.2 trillion yuan in May, marking a year-on-year increase of 300 billion yuan, the highest for the same period in nearly a decade [2]. - The cumulative increase in non-bank deposits this year has reached 3.07 trillion yuan, up 680 billion yuan year-on-year [2]. Group 2: Interest Rate Changes - Major state-owned banks initiated a significant reduction in deposit interest rates starting May 20, marking the first large-scale adjustment since 2025 and the seventh rate cut since October 2024 [3]. - The average interest rates for various deposit terms have fallen below 1% for short-term deposits, with the average rates for 3-year and 5-year deposits also entering the "1 era" [3]. - The average interest rates for 3-month, 6-month, 1-year, 2-year, 3-year, and 5-year deposits were reported as 1.004%, 1.212%, 1.339%, 1.428%, 1.711%, and 1.573% respectively, with significant declines observed across all terms [2]. Group 3: Factors Driving Deposit Migration - The reduction in deposit interest rates has diminished the attractiveness of bank deposits, prompting a shift towards non-bank financial products that offer relatively higher returns [1][3]. - The improvement of self-regulatory mechanisms for non-bank deposits and the ongoing regulation of wealth management products have accelerated the transfer of funds to the wealth management market [1]. - The "deposit migration" trend has been evident since last year, with two phases: the first phase involved a shift to wealth management and funds due to rising bond yields, while the second phase saw funds moving into the stock market as it began to recover [4][5]. Group 4: Impact on Financial Products - The decline in deposit rates has led to increased attractiveness of public fund products, money market funds, and insurance products, resulting in a significant shift of deposits into these financial products [5][6]. - The scale of bank wealth management has continued to grow, with a reported increase of 340 billion yuan in May, reaching 31.6 trillion yuan, further evidencing the "deposit migration" effect [6]. - Analysts suggest that the current trend of "deposit migration" may not yet be over, with expectations of continued investment in the bond market as non-bank institutions actively purchase bonds [6].

银行 2025 年 06 月 19 日 投资评级：看好（维持） 行业走势图 数据来源：聚源 -24% -12% 0% 12% 24% 36% 2024-06 2024-10 2025-02 银行 沪深300 liuchengxiang@kysec.cn 证书编号：S0790523060002 负债端：大行非银存款延续高增，4-5 月累计新增 2.6 万亿元 5 月大行负债端仍然延续 4 月非银存款大幅增长的态势，推动存贷增速差继续向 上修复。我们认为这可能反映两个现象：一是银行阶段性向非银同业扩表，二是 存款降息后搬家效应初步显现（分流向理财及其他资管产品、股市等）。从其他 存款性公司资产负债表来看，5 月"对其他金融机构债权"增加 6226 亿元，较 4 月增量明显修复，或反映银行向非银融出恢复，以及部分银行在预期 6 月负债缺 口较大时提前增加短债、货基等短期资产储备。由于有较大比例定存尚未到期， 推测脱媒现象或陆续反映。 评估下阶段的路径，居民存款或主要分流至风险偏好接近的现金管理类、短债 理财，而股市涨幅缓慢时分流存款效能较弱。5 月"对其他金融性公司负债"和 "计入 M2 的存款"增幅接近，可能说明 ...

Core Viewpoint - The article discusses the emergence of "financial special forces" who actively manage their investments in financial products due to the declining interest rates on bank deposits, leading to a shift in focus towards wealth management products [1][10]. Group 1: Investment Behavior - "Financial special forces" invest significant time researching and comparing various financial products to maximize returns, often moving funds frequently between products to capture fleeting opportunities [1][3]. - An example is provided of an individual who shifted 1.5 million yuan from a fixed deposit with a 4.8% interest rate to cash management products, reflecting a broader trend among investors [3][5]. - Social media platforms have seen a rise in discussions among these investors about product performance, indicating a community-driven approach to investment [3][4]. Group 2: Product Performance - Specific financial products, such as WeBank's "Current + Plus," have gained popularity due to their high annualized returns and T+0 trading capabilities, attracting the attention of these investors [4][5]. - For instance, the "Solid Income Pure Bond 7R" product has shown an annualized return of 5.35% since inception, outperforming many traditional deposit products [5]. Group 3: Market Trends - There is a noticeable trend of funds moving from traditional bank deposits to alternative investment products like wealth management and money market funds, driven by the low-interest-rate environment [10][12]. - In May, the increase in RMB deposits was 2.18 trillion yuan, with non-bank deposits reaching a ten-year high, suggesting a shift in investor behavior towards higher-yielding alternatives [10][12]. - The article notes that the average annualized return for bank wealth management products in May was 2.57%, which is more attractive compared to declining deposit rates [12]. Group 4: Regulatory Considerations - The concentration of funds in low-risk products may lead to potential risks such as duration mismatch and high asset concentration, prompting the need for regulatory oversight [13].

Core Insights - The emergence of "wealth management special forces" is noted as individuals shift focus from traditional deposit accounts to wealth management products due to declining interest rates [1][2] - These individuals actively research and compare various wealth management products to maximize returns, often moving funds frequently to capture fleeting opportunities [2][3] Wealth Management Trends - A growing number of investors, referred to as "wealth management special forces," are increasingly engaging in active management of their investments, moving funds based on daily performance [2][3] - Social media platforms have seen a rise in discussions about wealth management products, with many users sharing insights on product performance and optimal timing for investment [2][3] Product Performance and Strategies - Specific products, such as WeBank's "Current + Plus," are highlighted for their attractive annualized returns and T+0 trading capabilities, making them popular among active investors [3][4] - For instance, the "Solid Bond Pure Debt 7R" product has shown an annualized return of 5.35% since inception, outperforming many traditional deposit options [4] Market Dynamics - The overall trend indicates a significant shift of funds from traditional bank deposits to wealth management and money market funds, driven by lower interest rates on deposits [7][8] - In May, RMB deposits increased by 2.18 trillion yuan, with non-bank deposits reaching a ten-year high, suggesting a potential shift in investor behavior towards alternative assets [7] Regulatory and Competitive Landscape - The competition among banks to offer attractive wealth management products is intensifying, with some institutions launching short-term high-yield products to attract investors [8][9] - The average annualized return for bank wealth management products in May was reported at 2.57%, with cash management products yielding 1.49% and pure debt products at 2.69% [9]

Core Viewpoint - The People's Bank of China reported a significant increase in RMB deposits in May, driven by a surge in non-bank financial institution deposits, which reached a near ten-year high, indicating a shift in asset allocation preferences among residents and enterprises towards higher-yielding non-bank financial products [1][2]. Group 1: Deposit Growth and Structure - In May, non-bank deposits increased by 1.19 trillion yuan, marking the highest growth for the same period in nearly a decade [2]. - Cumulatively, non-bank deposits have risen by 3.07 trillion yuan this year, which is 680 billion yuan more than the same period last year [2]. - The increase in non-bank deposits is attributed to the declining deposit interest rates, prompting a "migration effect" where individuals and businesses prefer to allocate assets through non-bank institutions [2][3]. Group 2: Interest Rate Impact - The continuous decline in deposit rates has led to a shift in asset allocation from traditional bank deposits to higher-yielding financial products such as money market funds and cash management products [2][4]. - Major state-owned banks and joint-stock banks have lowered deposit rates, with the one-year fixed deposit rate reduced to 0.95% [2]. - This trend is expected to persist, as lower deposit rates encourage more funds to flow into consumption and investment activities, enhancing economic vitality and optimizing asset allocation [4][5]. Group 3: Diversification of Asset Allocation - There is a notable shift from "single deposits" to a diversified approach involving "wealth management + equities," driven by the deepening of interest rate marketization [4]. - The changing asset allocation mindset among residents is likely to lead to increased investments in stock markets, bond funds, private asset management products, and insurance savings products [4]. - The ongoing trend of deposit migration is expected to continue, with funds increasingly directed towards money market funds, bank wealth management, bond markets, and stock markets [4][5].

Core Viewpoint - The article discusses a significant shift in the deposit interest rate strategies of small and medium-sized banks in China, as they rapidly follow the lead of large state-owned banks in reducing deposit rates, moving away from their traditional high-interest deposit attraction methods [1][3]. Group 1: Deposit Rate Changes - A new wave of deposit rate cuts has been initiated by small and medium-sized banks, particularly in regions like Guangdong and Sichuan, with some rural commercial banks lowering their three-year fixed deposit rates to 1.2%, which is 5 basis points lower than the rates offered by large banks [1][3]. - The speed of this rate cut transmission from large banks to small banks is notably faster compared to previous cycles, with some banks reducing rates multiple times within a short period [3][4]. - As of June 1, certain small banks, such as Beijing Huairou Rongxing Village Bank, have set their three and five-year deposit rates at 1.20%, lower than the rates of major banks [3][4]. Group 2: Strategic Shift in Banking Operations - Small and medium-sized banks are abandoning their reliance on high-interest deposits due to the increasing burden of high-cost liabilities amidst declining loan rates [6][8]. - The overall net interest margin for commercial banks has narrowed, with the first quarter of 2025 showing a decrease of 9 basis points year-on-year, particularly affecting rural commercial banks which saw a significant drop of 15 basis points [6][7]. - The focus of these banks is shifting from aggressive deposit acquisition to optimizing existing funds and controlling costs, reflecting a broader change in operational strategy [6][8]. Group 3: Market Implications - The rapid reduction in deposit rates may lead to an increase in deposit migration, as the attractiveness of traditional bank deposits diminishes [10][11]. - The decline in deposit rates is expected to drive more funds into low-risk asset management products, enhancing the influence of the bond market [11]. - The current deposit rate for one-year deposits is at 0.95%, while the yield on one-year negotiable certificates of deposit (NCD) is at 1.68%, indicating a potential for deposit disintermediation [10][11].

Core Viewpoint - The recent trend shows that some small and medium-sized banks have lowered their deposit rates below those of large state-owned banks, marking a significant shift in the competitive landscape of the banking sector [1][2][4]. Group 1: Deposit Rate Changes - Following the initiation of a new round of deposit rate cuts by large state-owned banks, small and medium-sized banks have quickly followed suit, with some even abandoning their traditional strategy of attracting deposits through high interest rates [1][2]. - In regions like Guangdong and Sichuan, small banks have initiated a wave of deposit rate cuts, with some three-year fixed deposit rates dropping to 1.2%, which is 5 basis points lower than the rates offered by large banks [1]. - As of June 1, certain small banks, such as Beijing Huairou Rongxing Village Bank, have reduced their three-year and five-year deposit rates to 1.20%, which is below the rates of major commercial banks [2][3]. Group 2: Strategic Shift in Banking Operations - The reduction in deposit rates reflects a strategic shift among small and medium-sized banks from focusing on growth through deposit accumulation to optimizing their cost structures amid narrowing interest margins [1][4]. - Many small banks are now prioritizing the management of existing funds over aggressive deposit acquisition, indicating a significant change in operational focus [5][6]. - The net interest margin for commercial banks has been under pressure, with the overall net interest margin reported at 1.43% for Q1 2025, a decrease of 9 basis points from the previous quarter [6]. Group 3: Market Implications - The rapid decline in deposit rates among small banks may accelerate the trend of deposit migration, as the attractiveness of these banks diminishes [7][8]. - The reduction in deposit rates is expected to lead to increased flows into non-bank financial products, which could enhance the influence of the bond market [8]. - The current environment may also push broader interest rates, including government bond rates, further downward due to reduced deposit attractiveness [8].

Group 1 - The State Council has deployed new measures to stabilize the real estate market, focusing on stabilizing expectations, activating demand, optimizing supply, and mitigating risks [2] - Central and local governments will coordinate policies to implement targeted measures for the real estate market [2] Group 2 - In May, non-bank deposits in China reached a nearly ten-year high, with a monthly increase of nearly 1.2 trillion yuan, reflecting significant changes in fund flows [4] - The total RMB deposit balance reached 316.96 trillion yuan, with a year-on-year growth of 8.1% [4] Group 3 - The pharmaceutical sector is experiencing a surge, with nine out of the top ten actively managed equity funds being healthcare-themed, highlighting a significant shift in fund performance rankings [5] - The top-performing fund, Huatai-PineBridge Hong Kong Advantage Select A, achieved a return of 103.67% [5] Group 4 - The Hang Seng AH Premium Index has dropped to its lowest level in five years, with a decline of over 10% year-to-date [6] - As of June 13, 42 companies still have an AH premium rate exceeding 100%, while some companies are showing a discount of H-shares compared to A-shares [6] Group 5 - The Shenzhen pilot program for red-chip companies to list in Hong Kong has garnered attention, with expectations for enhanced investor confidence in China's capital market [7] - The policy aims to facilitate financial collaboration in the Guangdong-Hong Kong-Macao Greater Bay Area [7] Group 6 - The trend of companies issuing "suspension warnings" is increasing, allowing investors to reassess their investment decisions [8] - This proactive approach provides a buffer period for investors to evaluate potential risks [8] Group 7 - The announcement of a three-year cumulative return for pension funds aligns with the trend of long-term investment assessments [9] - This new metric is intended to guide pension management institutions towards long-term investment strategies [9] Group 8 - Dongshan Precision plans to acquire Source Photonics for up to 59.35 billion yuan, marking a strategic move into the optical communication sector [13][14] - The acquisition will be executed through a combination of equity purchase and convertible bond subscription [13][14] Group 9 - Bozhong Precision announced a high acquisition premium of 352% for a 70% stake in Shanghai Wodian, aiming to enter the automotive intelligent equipment market [15]