Group 1 - The People's Bank of China (PBOC) is set to announce the latest Loan Prime Rate (LPR) on May 20, with the current 1-year LPR at 3.1% and the 5-year LPR at 3.6%, remaining unchanged for six consecutive months [1] - PBOC Governor Pan Gongsheng announced a 0.1 percentage point reduction in policy rates, which is expected to lead to a corresponding decrease in LPR [1][2] - Major banks are anticipated to act first in lowering deposit rates, while smaller banks will follow based on their circumstances and market competition [1] Group 2 - A report indicates that a new round of deposit rate cuts is imminent, with the average interest rate for new personal housing loans at approximately 3.1% as of April [2] - For a personal mortgage loan of 1 million yuan over 30 years, the monthly payment is expected to decrease by 54 yuan, resulting in a total repayment reduction of 19,000 yuan [2] Group 3 - On May 20, major state-owned banks announced reductions in RMB deposit rates, with the largest cut being 25 basis points [5] - The Industrial and Commercial Bank of China (ICBC) lowered its current deposit rate to 0.05% and adjusted various term deposit rates downwards, with the 3-year and 5-year rates reduced to 1.25% and 1.3% respectively [5][10] - Agricultural Bank of China, Bank of China, and other major banks made similar reductions in their deposit rates, reflecting a coordinated effort to adjust to market conditions [10][16] Group 4 - Analysts suggest that the recent deposit rate cuts are a result of banks adjusting their strategies based on market conditions, which may enhance their ability to support the real economy [18] - The long-term deposit rates have seen larger cuts, particularly for terms over three years, which may lead to a shift in consumer behavior towards other investment options [18]

Core Viewpoint - The banking wealth management products are facing continuous pressure on yields due to the market-oriented adjustment of deposit interest rates, leading to a significant trend of "increased volume but decreased price" in the market for the first quarter of 2025 [1][2]. Group 1: Market Trends - In the first quarter of 2025, a total of 7,481 new wealth management products were launched, an increase of 254 products compared to the previous quarter, with wealth management subsidiaries issuing 5,346 products, accounting for 71.46% of the market [2]. - The average performance benchmark for newly issued open-ended wealth management products has dropped to 2.25%, down 0.21 percentage points, while closed-end products have an average benchmark of 2.69%, down 0.06 percentage points [2][3]. Group 2: Factors Influencing Performance - The decline in performance benchmarks reflects a decrease in market expectations for the future returns of underlying assets, influenced by low market interest rates, bond market fluctuations, and the implementation of self-discipline mechanisms for interbank deposit rates [3]. - The performance benchmarks for wealth management subsidiaries' newly issued open-ended and closed-end products are 2.25% and 2.75%, respectively, both showing a downward trend [2]. Group 3: Recommendations for Improvement - Industry experts suggest that wealth management subsidiaries should innovate products by diversifying asset classes and investment strategies, focusing on investor needs, and enhancing investor education to improve competitiveness [4]. - Potential measures include leveraging policies that encourage investment in the stock market, upgrading existing product systems, and extending the duration of wealth management products to improve yield performance [4].