Core Insights - Recent trends show that many medium and large banks, as well as urban commercial banks, are withdrawing five-year large-denomination certificates of deposit (CDs), with three-year CDs also becoming less available, leaving two-year CDs as the most common option [1] - The interest rates for large-denomination CDs have dropped to the "1s," indicating a significant decline in their attractiveness as a savings tool for banks [1] - The narrowing of banks' net interest margins, which fell to 1.43% in Q1 2023, is a key factor driving this trend, as banks seek to lower long-term funding costs to alleviate operational pressures and support the real economy [1][2] Group 1 - The withdrawal of medium and long-term large-denomination CDs will effectively relieve pressure on banks' net interest margins and optimize their financial structures [2] - Banks are expected to adjust their liability structures by increasing short-term deposits, structured deposits, and short-term wealth management products to replace the high-cost long-term CDs [2] - This shift allows banks to allocate more resources to support the real economy, reduce overall operating costs, enhance profitability, and mitigate financial risks [2] Group 2 - In response to market demand, banks are likely to accelerate the development of financial markets and introduce new financial products and services [2] - Customers can diversify their investment portfolios based on their risk tolerance and investment goals, with options such as government bonds for low-risk preferences and cash management products or money market funds for those needing higher liquidity [2] - When building investment portfolios, customers should consider their actual circumstances, including investment experience, expected returns, risk tolerance, and liquidity needs [2]

Core Viewpoint - The banking industry is facing pressure from narrowing net interest margins, with declining asset yields and relatively high liability costs. Adjustments to large time deposit rates are a necessary response to market changes and an optimization of operational strategies [1][2]. Group 1: Interest Rate Adjustments - Banks have recently lowered the interest rates on large time deposits, with some even suspending the issuance of medium to long-term large time deposit products. For instance, the latest 3-year large time deposit rates from major banks have dropped to 1.55%, while 1-year and 2-year products are at 1.2% [1][2]. - The net interest margin for commercial banks was reported at 1.43% as of the end of Q1 2025, down from 1.52% at the end of Q4 2024, indicating a continued downward trend [2]. Group 2: Market Adaptation Strategies - In response to the declining interest rates, banks are promoting wealth management products and structured deposits as alternatives to traditional deposits. These products typically offer higher yields, catering to customers seeking better returns in a low-interest environment [1][4]. - The shift towards short- to medium-term products is aimed at managing interest rate risks associated with long-term funding, as banks seek to maintain reasonable net interest margins [3]. Group 3: Customer Behavior and Preferences - Customers are increasingly aware of the diminishing returns on large time deposits, leading some to consider alternative low-risk investment products such as money market funds and government bonds, which offer competitive yields and better liquidity [3][4]. - The demand for wealth management products is rising, as they provide banks with a crucial tool for attracting funds while also helping to lower overall liability costs [4].

Group 1 - The core point of the news is that Bank of Communications Co., Ltd. is issuing A-shares to specific investors to raise up to RMB 120 billion to supplement its core tier one capital [24][25][26] - The issuance will involve the Ministry of Finance, China National Tobacco Corporation, and China Shuangwei Investment Co., Ltd. as the main subscribers [24][26] - The issuance price is set at RMB 8.71 per share, which is 80% of the average trading price over the previous 20 trading days [25][26] Group 2 - The total assets of Bank of Communications reached RMB 14,900,717 million, with total liabilities of RMB 13,745,120 million and total equity of RMB 1,155,597 million as of the latest reporting period [3] - The bank's operating income for 2024 is projected to be RMB 259,826 million, with a net profit of RMB 94,229 million [3] - The non-performing loan ratio has improved to 1.31%, with a provision coverage ratio of 201.94% [5][3] Group 3 - The bank's main business includes absorbing public deposits, issuing loans, and conducting domestic and international settlements [2] - The bank operates under the financial services industry, specifically in monetary financial services [2] - The bank's registered capital is RMB 74,262,726,645 [1]

Core Viewpoint - The banking industry is facing pressure on net interest margins, leading to an increase in service fees to cover operational costs and improve service quality [1][7]. Group 1: Service Fee Adjustments - Multiple banks have announced new or increased service fees, including account management fees, transfer fees, and credit card annual fees [1][2]. - Suzhou Bank introduced a new service fee for its "Zunxing Card" with an annual fee of 588 yuan for the platinum card, effective from September 10, 2025 [2]. - Uihai Bank will charge for credit business and syndicate loan services starting June 13, 2025, with fees for personal deposit certificates set at 20 yuan per certificate and credit certificates at 200 yuan each [4]. - Several rural commercial banks have also raised service fees, such as the adjustment of ATM withdrawal fees from free to 3.3 yuan per transaction by Lujiang Rural Commercial Bank [4][6]. Group 2: Net Interest Margin Pressure - The overall net interest margin for commercial banks was reported at 1.43% in Q1 2025, a decrease of 9 basis points from the previous quarter [8]. - Different types of banks experienced varying changes in net interest margins, with rural commercial banks seeing the largest decline of 15 basis points to 1.58% [8]. - The adjustments in service fees are seen as a response to the pressures from market competition and rising operational costs, including technology investments and risk management [7][8]. Group 3: Future Strategies - The adjustments in service fees are expected to become a regular strategy for banks as they seek to balance supporting the real economy with their profitability needs [7][8]. - Banks are likely to focus on optimizing business structures, enhancing service efficiency, and leveraging financial technology to manage costs while supporting small and medium enterprises [8].

Core Viewpoint - The article discusses the declining availability and interest rates of large-denomination time deposits in China, highlighting a shift in the banking sector's focus towards high-net-worth clients and the impact of market interest rate changes on deposit products [2][4][16]. Summary by Sections Availability of Large-Denomination Time Deposits - Many banks, including major state-owned and joint-stock banks, have removed five-year and some three-year large-denomination time deposit products from their offerings, now primarily providing two-year options [2][7]. - For example, Industrial and Commercial Bank of China has no five-year large-denomination time deposits available, with one-year and two-year rates at 1.2% and three-year rates at 1.55% respectively [3][10]. Interest Rate Trends - The majority of banks have seen their maximum annualized interest rates for large-denomination time deposits drop to the 1% range, with some banks offering rates as low as 0.9% for one-month deposits, which are now lower than many money market funds [4][6][11]. - The three-year large-denomination time deposit rates have decreased by approximately 80 basis points compared to the previous year, reflecting a broader trend of declining deposit rates in response to market conditions [15][16]. Market Dynamics and Client Focus - In the current environment, banks are focusing on managing their liability costs and optimizing client structures, with a notable shift towards serving high-net-worth clients [5][17]. - The article notes that some banks are promoting the transfer of existing high-rate large-denomination time deposits as a strategy to attract clients seeking better returns [13]. Regional Variations in Rates - There are discrepancies in interest rates for the same large-denomination time deposit products across different regions, indicating a localized approach to deposit pricing [14][19]. Competitive Landscape - The competition among banks has intensified, leading to a reduction in deposit interest rates as banks seek to lower their funding costs while still growing their deposit bases [18][19].

Core Viewpoint - The availability of high-yield large-denomination certificates of deposit (CDs) is decreasing, with many banks no longer offering products with longer maturities, and the interest rates have entered the 1% era for most banks [1][2]. Group 1: Availability of Large-Denomination CDs - Many banks, including major state-owned and joint-stock banks, have removed five-year and some three-year large-denomination CDs from their offerings, now only providing up to two-year products [1][2]. - The interest rates for large-denomination CDs have significantly decreased, with most banks offering rates below those of money market funds [4][2]. Group 2: Interest Rate Comparison - The annualized interest rates for large-denomination CDs vary by bank size and type, with major banks offering rates as low as 0.9% for one-month CDs and 1.55% for three-year CDs, while some private banks offer rates as high as 2.3% for three-year CDs [3][6]. - The average annualized interest rate for listed banks' deposit rates has decreased to 1.82% in 2024, down 15 basis points from 2023 [9]. Group 3: Market Trends and Strategies - In response to declining interest rates, banks are focusing on optimizing their liability structures and shifting resources towards high-net-worth clients [6][9]. - The trend of transferring high-yield large-denomination CDs is gaining traction, with clients seeking to acquire older CDs with better rates through transfer zones [5][6]. Group 4: Regional Rate Discrepancies - There are notable regional differences in the interest rates for the same large-denomination CD products, with variations observed across cities such as Shanghai, Zhejiang, and Jiangsu [6][9]. Group 5: Impact of Regulatory Changes - The continuous decline in the interest rates for large-denomination CDs is a result of the market-oriented interest rate reforms and the reduction of the Loan Prime Rate (LPR) [6][8]. - The net interest margin for banks has narrowed, with the average margin dropping to 1.43% in the first quarter of 2025, down from 1.54% in the previous year [6][8].

Core Viewpoint - The trend of large-denomination certificates of deposit (CDs) with a five-year term is declining as banks adjust their strategies to manage interest margin pressures due to falling asset yields and high funding costs [1][2][3]. Group 1: Changes in Large-Denomination CDs - Many banks have reduced the maximum term for large-denomination CDs to two years, reflecting a broader trend of shortening deposit terms [2][3]. - The interest rates for three-year CDs have dropped significantly, with rates now in the range of 1.55% to 1.75%, down approximately 80 basis points compared to the same period in 2024 [3][4]. - The withdrawal of five-year CDs is part of a strategy to optimize the liability structure and reduce funding costs, as these long-term products are seen as high-cost liabilities [2][4]. Group 2: Impact on Banking Strategies - Banks are actively promoting short-term and structured deposit products to maintain flexibility in their funding strategies and to attract customers away from high-cost long-term deposits [4][5]. - The narrowing of net interest margins has prompted banks to lower deposit rates across various terms, indicating a strategic shift to manage costs effectively [4][5]. - Regulatory guidance is also influencing banks to adjust their liability structures, with a focus on reducing high-interest long-term deposit products to support economic financing [3][4]. Group 3: Investor Strategies - Investors are advised to reconsider their asset allocation strategies in light of the changing landscape of deposit products, with recommendations to diversify into short-term deposits, government bonds, and structured financial products [5][6]. - The current environment suggests that over-reliance on traditional deposits may lead to returns that lag behind inflation, prompting a need for a more balanced investment approach [5][6]. - For investors with higher risk tolerance, there is an encouragement to explore equity assets alongside fixed-income products to enhance long-term returns [5][6].

Core Viewpoint - The evolution of China's banking industry in attracting deposits has shifted from traditional methods to innovative marketing strategies, particularly targeting younger consumers through trendy products like LABUBU blind boxes [1][5][12] Group 1: Historical Context of Deposit Attraction - In the 1990s, banks relied on interest rates and physical branch expansion to attract deposits, focusing on local service advantages [8] - Post-2010, banks diversified their strategies with promotional gifts like essential goods and appliances, but this led to increased costs and regulatory scrutiny [9][10] - Recent years have seen banks adopting more creative approaches, such as customer points systems and partnerships with e-commerce platforms to enhance customer engagement [10][11] Group 2: Current Trends and Innovations - The LABUBU blind box craze has become a new marketing tool for banks, with promotional activities like "deposit to receive LABUBU" gaining significant traction among young customers [5][6] - The promotional activities have clear participation criteria, such as minimum deposit amounts and account types, aimed at attracting new customers [6][7] - Banks are leveraging the social media buzz around LABUBU to create a viral marketing effect, which is more appealing than traditional gifts [7] Group 3: Challenges and Considerations - While innovative marketing strategies can attract younger customers, they may not contribute to long-term customer loyalty or financial service ecosystem development [7][12] - Analysts caution that such promotional tactics could lead to unsustainable practices, including potential regulatory violations and increased competition among banks for high-cost customer acquisition [12][13] - The banking industry is urged to focus on compliance and sustainable practices rather than relying on gimmicks, emphasizing the need for quality products and services to retain customers [12][13]

6月8日，记者收到光大银行的大额存单发售提示，了解后发现，该行当前在售的大额存单最长期限为3 年。其他银行的情况也类似，工商银行、建设银行、浦发银行、招商银行……包括多家地方城商行在 内，近期发售的产品中5年期大额存单已经悄然"下架"，部分银行在售大额存单的最长期限为2年期。 银行在售的特色存款中，中长期产品也难觅踪迹，记者查询银行APP发现，多家商业银行在售的特色存 款产品期限均不超过1年。 利率方面，当前商业银行在售的大额存单产品中，股份制银行3年期大额存单的利率大多为1.75%，国 有大行3年期大额存单的利率则均为1.55%。 与整存整取的定期存款相比，大额存单产品此前具备的"利率优势"正在缩小。以工行、建行为例，当前 3年期大额存单利率与定期存款利率最高均为1.55%，已然拉平。3个月期、6个月期等部分期限较低的 存款产品中，大额存单利率仅较定存产品高出10个基点。部分农商行等地方中小银行的在售产品中，更 是已经难觅大额存单产品的踪迹。 在业内人士看来，当前银行普遍暂停五年期大额存单发行，不再提供中长期特色存款等是为了降低负债 成本，保持合理净息差水平的需要。当部分商业银行3年期、5年期定期存款产品出 ...

Report Industry Investment Rating No relevant content provided. Core View of the Report - The short - end interest rates in the bond market may open a downward space. The yield of 1 - year inter - bank certificates of deposit is expected to decline to around 1.6%, and the yield of 1 - year treasury bonds is expected to decline to 1.3%. The full decline of short - end interest rates will bring a downward space for long - end interest rates. The bond market may first experience a bullish steepening and then a bullish flattening. The strategy is to first use the "bullet" strategy and then the "dumbbell" strategy. If the central bank restarts the operation of buying and selling treasury bonds, it will directly benefit the bond market, especially short - end varieties. Even without considering the central bank's purchase of treasury bonds through primary dealers, large banks also have the motivation to buy short - term bonds. After the peak maturity period of inter - bank certificates of deposit in June, the yield is expected to decline, and the yields of corresponding treasury bonds and credit bonds will also decline [2][7][28]. Summary by Relevant Catalogs 1. Large Banks Buying Short - Term Bonds, Short - End Market Expected to Start - If the central bank restarts the operation of buying and selling treasury bonds, it will directly benefit the bond market, especially short - end varieties. The form may be similar to that in the fourth quarter of 2024, mainly manifested as the purchase of short - duration treasury bonds rather than "buying short and selling long" [5][13]. - Even without considering the central bank's purchase of treasury bonds through primary dealers, large banks have the motivation to buy short - term bonds: 1) Since this year, long - term bond trading has been difficult and the profit - making effect has been weak, so large banks have the motivation to adjust their strategies and buy short - term bonds. 2) Since this year, the average issuance term of government bonds has been higher than in previous years. After taking on more long - duration assets, large banks also have the motivation to buy short - term treasury bonds to balance the duration of the bond investment portfolio. 3) After the reduction of the listed deposit rate in mid - and late May, there is a possibility of "deposit transfer" in banks. This part of the funds mainly flows back to the banking system through non - banks' allocation of inter - bank certificates of deposit and inter - bank current deposits, which may bring pressure on the shortening of the liability duration of banks. Therefore, large banks also have the demand to buy short - duration treasury bonds to balance the asset - liability duration [5][17]. 2. Bank Liability Pressure is Controllable, and the Yield of Certificates of Deposit is Expected to Continue to Decline - The reduction of bank deposit rates theoretically has a negative impact on certificates of deposit and is beneficial to short - duration treasury bonds and credit bonds. Considering the uncertain recovery of real - economy financing and the central bank's recent care attitude, after the peak maturity period of inter - bank certificates of deposit in June, the yield is expected to decline to around 1.6%, and the yields of corresponding treasury bonds and credit bonds will also decline [6][21]. - The reduction of deposit rates and the financial disintermediation after the rectification of "manual interest compensation" have similarities and differences. The reduction of the listed deposit rate is a normal process of interest rate marketization transmission. Due to the stickiness of general deposits, the "deposit transfer" caused by the reduction of the listed deposit rate will be slower than that caused by the rectification of manual interest compensation. The final influencing factors of the price of inter - bank certificates of deposit are the central bank's liquidity injection and the consumption of banks' excess reserves by real - economy financing. Currently, the central bank has shown its care attitude towards liquidity, and the recovery of real - economy financing is still slow. It is currently judged that 1.7% is basically the upper limit of the yield of 1 - year inter - bank certificates of deposit, and it is expected to decline to 1.6% after the maturity pressure in June [6][22]. 3. Short - End Interest Rates Decline First, Then Driving Long - End Interest Rates Down - The short - end interest rates may decline first, and then open a downward space for the long - end. It is expected that the bond market may first experience a bullish steepening and then a bullish flattening. The yield of 1 - year inter - bank certificates of deposit is expected to decline to around 1.6%, and the yield of 1 - year treasury bonds is expected to decline to around 1.3%. If the central bank further reduces the funds price center, the yield of 10 - year treasury bonds is expected to decline to around 1.6%, and the yield of 30 - year treasury bonds is expected to decline to around 1.8%. The strategy is to first use the "bullet" strategy and then the "dumbbell" strategy [7][28].