Core Viewpoint - The long-term large-denomination certificates of deposit (CDs), once seen as a tool for attracting deposits, are gradually disappearing from the market, particularly the 5-year CDs, as banks aim to optimize their liability structure and stabilize net interest margins [1][2][3]. Summary by Sections Current Market Situation - Major state-owned banks and several joint-stock banks have removed 5-year large-denomination CDs from their apps, while 3-year CDs are still available but often marked as "sold out" or "in limited supply" [2][3]. - The interest rates for the remaining 3-year large-denomination CDs are concentrated in the range of 1.5% to 1.8% [2]. Bank Strategies - Banks are actively reducing high-cost long-term large-denomination CDs as a direct method to optimize their liability structure and stabilize net interest margins, which currently stand at 1.42%, remaining at historical lows [1][3]. - The net interest margins of most A-share banks have shown a downward trend, with state-owned banks experiencing an average decline of about 15 basis points [3]. Future Expectations - There is an expectation of further interest rate declines, prompting banks to reduce the issuance of long-term large-denomination CDs to avoid being locked into high-cost deposits as rates fall [3]. - Similar adjustments in deposit structures are observed in various local small and medium-sized banks, with some banks announcing the cancellation of 5-year fixed deposit products and lowering interest rates on other terms [3][4]. Investment Trends - Since the establishment of the market-oriented deposit rate adjustment mechanism in April 2022, major banks have reduced deposit rates in several rounds, with the latest cuts occurring in May 2023 [5]. - As interest rates decline, there is a shift in investor behavior towards diversified asset allocation, with a growing interest in low-risk investment products such as government bonds and bank wealth management products [5]. - According to a recent survey, 62.3% of urban residents prefer "more savings," a decrease of 1.5 percentage points from the previous quarter, while 18.5% prefer "more investments," an increase of 5.6 percentage points [5]. Future Growth Projections - A report from CITIC Securities anticipates that the growth of wealth management scale will continue to be driven by the "migration" of deposits towards various asset management products, with an expected growth of at least 10% in 2026 [6]. - If the wealth management scale reaches 34 trillion yuan by the end of 2025, it is projected to reach approximately 38 trillion yuan in 2026 [6].

Core Viewpoint - Major state-owned banks and some joint-stock banks in China have recently suspended the sale of 5-year large-denomination time deposits, with current offerings primarily focused on 1-month to 3-year products [1] Group 1: Bank Actions - Six major state-owned banks, including ICBC, ABC, BOC, CCB, BOCOM, and PSBC, along with several joint-stock banks, have withdrawn long-term deposit products [1] - Many small and medium-sized banks have also announced the suspension of 3-year and 5-year fixed deposit products while simultaneously lowering interest rates across various deposit terms [1] - The remaining large-denomination time deposits are mostly concentrated in 1-month, 3-month, and 3-year terms, with 3-year products becoming the primary long-term offering [1] Group 2: Interest Rate Trends - The interest rates for 3-year large-denomination time deposits generally range from 1.5% to 1.75%, with reports of "tight quotas" and "sold out" situations being common [1] - The average net interest margin for commercial banks has dropped to a historical low of 1.42% in Q3, reflecting the pressure on bank profitability [2] Group 3: Strategic Adjustments - The adjustments in long-term deposit products are a response to the narrowing net interest margin, aimed at alleviating profitability pressures [2][3] - The shift indicates a transition from a focus on scale expansion to a more refined approach that emphasizes the quality of liabilities [3] Group 4: Future Outlook - There is potential for further reductions in deposit rates as banks continue to adjust high-cost deposit products [4] - Investors are advised to monitor market dynamics closely, including LPR adjustments and regulatory changes, while diversifying their asset allocation based on risk preferences [4]

Core Viewpoint - The recent collective removal of five-year large denomination time deposits by six major state-owned banks indicates a significant shift in the banking industry towards reducing long-term deposit products due to pressure on net interest margins [1][4]. Group 1: Changes in Deposit Products - Six major state-owned banks have collectively removed five-year large denomination time deposits, with only three-year products remaining, and their interest rates have dropped to between 1.5% and 1.75% [1]. - The first bank to announce the cancellation of five-year fixed deposits was Tongyu County Mengyin Village Bank, which will eliminate this product starting November 5, 2025, and has also lowered interest rates for other terms [1][3]. - The adjustments include a reduction of 5 basis points for one-year and two-year deposits, bringing their rates to 1.45% and 1.55%, respectively, while the three-year deposit rate was reduced by 10 basis points to 1.85% [1][3]. Group 2: Industry Trends and Challenges - The banking industry is facing net interest margin pressure due to declining loan rates and high competition for deposits, leading to a need for banks to adjust their long-term high-interest deposit products [4][5]. - Private banks are more actively adjusting their products, with at least seven banks, including Meizhou Merchants Bank and Mybank, having removed five-year fixed deposits [3][4]. - According to the National Financial Regulatory Administration, private banks experienced a 0.08 percentage point decrease in net interest margins in Q3 2025, reflecting a broader industry challenge [3]. Group 3: Future Outlook - Industry insiders predict that while long-term deposits will not completely disappear, they will exhibit differentiated supply characteristics, with state-owned banks likely retaining five-year deposits as service tools but at potentially lower rates [5]. - Smaller banks are expected to shift towards one to three-year products or implement promotional strategies to manage their deposit scales [5]. - The reduction in deposit rates may lead to a "deposit migration" effect, where funds seek higher returns in capital markets, potentially benefiting direct financing markets [5].

Core Viewpoint - The major state-owned banks in China have collectively removed five-year large-denomination time deposits, indicating a trend of declining long-term deposit products in the banking industry [1][2][4] Group 1: Changes in Deposit Products - The six major state-owned banks have eliminated five-year large-denomination time deposits, with only three-year products remaining, which have seen interest rates drop to between 1.5% and 1.75% [1] - The first bank to announce the cancellation of five-year time deposits was Tongyu County Mengyin Village Bank, which will stop offering this product starting November 5, 2025 [1] - Other banks, including at least seven private banks, have also begun to remove five-year time deposits, reflecting a broader trend in the industry [3][4] Group 2: Interest Rate Adjustments - The interest rates for various deposit products have been adjusted downwards, with one-year and two-year rates reduced by 5 basis points to 1.45% and 1.55%, respectively, and the three-year rate decreased by 10 basis points to 1.85% [3] - The adjustments are a response to the pressure on net interest margins faced by banks, as the yield on assets (like loan rates) is declining while the cost of liabilities (like deposit rates) remains rigid [2][4] Group 3: Industry Context and Implications - The banking industry is experiencing a "two-sided squeeze" where declining loan rates and high competition for deposits are pressuring net interest margins, leading to the reduction of long-term high-interest deposit products [4] - A survey indicated that 62.3% of urban depositors prefer to save more, a slight decrease from the previous quarter, suggesting a shift in savings behavior due to lower interest rates [4] - Analysts predict that while long-term deposits will not completely disappear, they will exhibit differentiated supply characteristics, with state-owned banks likely retaining five-year deposits as service tools but at potentially lower rates [5]

Core Viewpoint - The article discusses the recent trend of small and medium-sized banks in China, particularly Blue Ocean Bank, suspending long-term deposit products due to pressure on net interest margins and high funding costs, reflecting a proactive balance sheet contraction strategy in a declining interest rate environment [3][11]. Group 1: Deposit Trends - Blue Ocean Bank has suspended all its fixed-term deposit products, including 2-year, 3-year, and 5-year terms, leading to a situation where all deposit products are sold out [4][5]. - The bank's customer service indicated that the suspension of these deposit products is due to reaching full capacity, with no clear timeline for when they will be available again [10]. - The bank's interest rates for various deposit terms are as follows: 3-month (1.35%), 6-month (1.55%), 1-year (1.65%), 2-year (1.85%), 3-year (2%), and 5-year (2%) [10]. Group 2: Financial Performance - Blue Ocean Bank reported a significant decline in financial performance, with operating income dropping by 39.42% year-on-year to 1.452 billion yuan and net profit falling by 47.86% to 415 million yuan [11]. - The bank's net interest margin decreased sharply from 4.34% to 2.35% within a year, indicating a substantial decline in profitability [11]. Group 3: Industry Context - The trend of suspending long-term deposit products is not isolated to Blue Ocean Bank; other small and medium-sized banks, such as the Tongyu Mongolian Village Bank and Meizhou Merchants Bank, have also canceled their 5-year fixed deposit products [13]. - The overall banking environment is characterized by a lack of high-yield assets to match high-cost liabilities, leading banks to halt deposit acquisition to control scale and costs [13][14]. - The article highlights a broader shift in the banking sector, where long-term deposit products are being phased out, and interest rates are declining, marking the end of an era where depositors could earn significant interest [12][14].

Group 1 - The core viewpoint of the articles highlights a trend among banks, particularly private banks, to discontinue long-term deposit products, specifically five-year fixed-term deposits, in response to policy adjustments and to manage funding costs amid narrowing net interest margins [1][2][3] - Several private banks have removed five-year fixed-term deposit products from their offerings, with some banks experiencing a phenomenon of interest rate inversion, where the interest rate for three-year deposits exceeds that of five-year deposits [2][3] - Major state-owned and joint-stock banks are also reducing the availability of long-term large-denomination certificates of deposit (CDs), with some banks indicating that five-year CDs are no longer available [3] Group 2 - The primary reason for banks ceasing the issuance of long-term large-denomination CDs and fixed-term deposits is to actively reduce funding costs in response to the pressure of narrowing net interest margins [3][4] - Bank executives have indicated that the overall net interest margin situation is stabilizing, attributed to manageable negative impacts from monetary policy adjustments and coordinated adjustments in deposit rates alongside LPR reductions [4] - Banks are optimizing their liability structures by controlling the growth of high-cost deposits and adjusting the issuance plans for deposit products to lower deposit rates [4]

Core Viewpoint - The trend of large-denomination certificates of deposit (CDs) disappearing from the market is evident, with major banks removing five-year CDs and some private banks discontinuing all terms of large CDs [1][2][4]. Group 1: Current Market Situation - Major state-owned banks and national joint-stock banks have removed five-year large CDs from their mobile banking and official websites [2]. - The remaining large CDs available are primarily short-term, with most banks offering only three-month, six-month, or one-year products [3]. - Some private banks still offer high-interest CDs above 2%, but these are limited in availability and sell out quickly [4]. Group 2: Reasons for Discontinuation - The primary reason for banks discontinuing long-term large CDs is to alleviate the increasing pressure on net interest margins [4]. - As loan rates decline to support the real economy, banks' asset yields have decreased, making high-cost liabilities from large CDs less favorable [4]. - Reducing long-term, high-cost liabilities helps banks optimize their liability structure and manage interest rate risks in a declining rate environment [4]. Group 3: Future Outlook - Large CDs will not completely disappear, but their market role and form are changing significantly, with a shift towards shorter-term offerings [5]. - The interest rate advantage of large CDs is expected to diminish, aligning more closely with regular fixed-term deposits [5]. - The long-term trend in the deposit market indicates a downward trajectory for interest rates, driven by monetary policy and banks' efforts to reduce funding costs [5][6].

Core Viewpoint - The trend of small and medium-sized banks discontinuing long-term deposit products is highlighted, with a combination of product withdrawals and interest rate cuts signaling the end of the "interest-earning era" for depositors [3][4]. Group 1: Discontinuation of Long-Term Deposit Products - Meizhou Commercial Bank announced the discontinuation of its five-year fixed deposit product and the termination of automatic renewal services due to policy adjustments [5]. - Several small and medium-sized banks have also removed five-year fixed deposits, with notable examples including the announcement from Tuyuqi Mengyin Village Bank and Zhongguancun Bank [10]. - A total of seven banks have removed five-year fixed deposits from their offerings, while some banks have listed them as sold out [11]. Group 2: Interest Rate Cuts - A new wave of interest rate cuts is occurring among small and medium-sized banks to address net interest margin pressures, with many banks reducing deposit rates since October [13]. - For instance, Pingyang Pudong Village Bank cut its three-year and five-year deposit rates from 2.1% and 2.15% to 1.3% and 1.35%, a reduction of 80 basis points [13]. - The average net interest margin for various types of banks has narrowed, with state-owned banks, joint-stock banks, private banks, and foreign banks experiencing declines of 14 basis points, 5 basis points, 27 basis points, and 7 basis points respectively [15]. Group 3: Future Outlook - Analysts predict that if the Loan Prime Rate (LPR) is further reduced, deposit rates will likely follow suit, leading to a new round of widespread cuts [17]. - The possibility of new monetary policy measures, including interest rate cuts and reserve requirement ratio reductions, may stimulate internal financing demand [16].

Core Viewpoint - The trend of small and medium-sized banks discontinuing long-term deposit products and lowering interest rates is closing the door on the "interest-earning era" for depositors [1][2]. Group 1: Discontinuation of Long-Term Deposit Products - Meizhou Commercial Bank announced the discontinuation of its five-year fixed deposit product and the termination of automatic renewal services due to policy adjustments [2]. - Several small and medium-sized banks have been phasing out five-year fixed deposit products, with notable examples including the announcement from Tuyuqi Mengyin Village Bank, which explicitly canceled its five-year fixed deposit product [5]. - A total of seven banks have removed five-year fixed deposits from their offerings, including Meizhou Commercial Bank and Zhongguancun Bank, with some also discontinuing three-year fixed deposits [6]. Group 2: Interest Rate Reductions - Many small and medium-sized banks have entered a new round of interest rate cuts to address the pressure on net interest margins, with significant reductions observed in recent months [8]. - For instance, Pingyang Pudong Village Bank reduced its three-year and five-year fixed deposit rates from 2.1% and 2.15% to 1.3% and 1.35%, respectively, marking a drop of 80 basis points [8]. - The overall trend shows that banks are aligning their deposit rates with larger institutions, leading to a flattening of previously higher rates [11]. Group 3: Impact on Banking Sector - The net interest margin for banks has been under pressure, with state-owned, joint-stock, private, and foreign banks all experiencing a narrowing of their margins compared to the previous year [12]. - Analysts suggest that the current low levels of net interest margins may deter banks from further reducing loan rates, as it could threaten their profitability [13]. - There is speculation that monetary policy may initiate a new round of interest rate cuts, which could lead to a further decline in deposit rates [14].

Core Viewpoint - Morgan Stanley reports that China Construction Bank (00939) management indicates that the yields on consumer loans, mortgages, and large corporate loans are stabilizing, with expectations for stable yields if the Loan Prime Rate (LPR) does not significantly decrease by 2026 [1] Group 1: Loan Performance and Projections - The bank anticipates that the narrowing of net interest margin will slow down by 2026, with pressure mainly during the first quarter loan repricing period [1] - Approximately 60% of mortgage loans will be repriced on January 1, 2026, and management believes that net interest income is likely to turn positive, supporting revenue growth [1] - After regular property price reassessments, the loan-to-value ratio for mortgages exceeds 40%, and management is satisfied with the current credit quality of mortgage loans [1] Group 2: Non-Performing Loans and Provisions - Management expresses satisfaction with the current non-performing loan coverage ratio and is willing to gradually release provisions to support profits as income stabilizes [1]