Group 1 - The core viewpoint of the articles indicates a continuous decline in bank deposit rates, with average rates for medium to long-term deposits entering the "1" range and 3-month deposit rates dropping into the "0" range [1][2] - As of June 2025, the average interest rates for various deposit terms are as follows: 3-month at 0.949%, 6-month at 1.156%, 1-year at 1.287%, 2-year at 1.372%, 3-year at 1.695%, and 5-year at 1.538%, showing a decline across all terms compared to May [1] - Major state-owned banks and national joint-stock banks have lowered their deposit rates, with the maximum reduction reaching 25 basis points, and some 1-year fixed deposit rates falling below 1% [1][2] Group 2 - The People's Bank of China announced a reduction in the 1-year LPR to 3% and the 5-year LPR to 3.5%, both down by 10 basis points from previous values, prompting banks to adjust their rates accordingly [2] - Analysts suggest that the downward trend in deposit rates may continue in the medium to long term due to ongoing pressure on banks' net interest margins as a result of lower LPR rates [2] - In June 2025, the average interest rates for large denomination certificates of deposit (CDs) were reported as follows: 3-month at 1.179%, 6-month at 1.391%, 1-year at 1.477%, 2-year at 1.462%, 3-year at 1.768%, and 5-year at 1.700%, with declines noted across most terms compared to May [3]

Group 1 - Since June, bank deposit rates have continued to decline, with medium and long-term deposit rates entering the "1 era" and some short-term deposit rates entering the "0 era" [1] - In June, the average interest rates for various term deposits were reported as follows: 6-month at 1.156%, 1-year at 1.287%, 2-year at 1.372%, 3-year at 1.695%, and 5-year at 1.538%, while the 3-month term average rate fell to 0.949% [1] - Compared to May, all term deposit rates decreased in June, with the 3-month rate dropping by 5.5 basis points (BP), 6-month by 5.6 BP, 1-year by 5.2 BP, 2-year by 5.6 BP, 3-year by 1.6 BP, and 5-year by 3.5 BP [1] Group 2 - The average interest rates for large denomination certificates of deposit (CDs) also showed a downward trend, with 3-year CDs at 1.55%, 2-year at 1.2%, and 1-month and 3-month rates entering the "0 era" at 0.9% [1] - In June, the average interest rates for large denomination CDs were reported as follows: 3-month at 1.179%, 6-month at 1.391%, 1-year at 1.477%, 2-year at 1.462%, 3-year at 1.768%, and 5-year at 1.700% [2] - The decline in interest rates for large denomination CDs was significant, with the 1-year rate down by 8.39 BP, 2-year by 18.67 BP, and 3-year by 30.01 BP [2] Group 3 - The phenomenon of "storing for 5 years is worse than storing for 3 years" has become more common, indicating a narrowing gap between large denomination CDs and term deposits [2] - The average expected yield for structured deposits in June was reported at 1.78%, a decrease of 7 BP from the previous month, while the average expected maximum yield was 2.14%, down 11 BP [2] - The recent trend of declining deposit rates is attributed to the ongoing market-oriented interest rate reforms and the pressure on banks' net interest margins due to the continuous decline in the Loan Prime Rate (LPR) [3]

Core Viewpoint - The report indicates a continuous decline in bank deposit rates across various terms, reflecting broader trends in the banking sector and the impact of market reforms [1][2][3]. Deposit Rate Trends - The average deposit rates for different terms in June 2025 are as follows: 3-month at 0.949% (down 5.5 BP), 6-month at 1.156% (down 5.6 BP), 1-year at 1.287% (down 5.2 BP), 2-year at 1.372% (down 5.6 BP), 3-year at 1.695% (down 1.6 BP), and 5-year at 1.538% (down 3.5 BP) [2][3]. - The 5-year average rate has decreased by approximately 1 percentage point from 2.433% in June 2024 to 1.538% in June 2025 [2]. Market Reactions - Major state-owned banks adjusted their deposit rates on May 20, with the 1-year fixed deposit rate falling below 1%, prompting other banks to follow suit [3]. - The ongoing trend of declining deposit rates is attributed to the pressure on banks' net interest margins due to lower Loan Prime Rates (LPR) [3]. Structural Deposit Products - The average term for structured deposits in June 2025 is 103 days, with an average expected middle yield of 1.78% (down 7 BP) and an average expected maximum yield of 2.14% (down 11 BP) [4]. - Different types of banks show varying average terms and yields for structured deposits, with state-owned banks averaging 70 days and a maximum yield of 1.99% (down 19 BP) [4]. Performance by Linked Assets - For structured deposits linked to different assets, the average expected middle yield for currency-linked deposits is 1.77% (down 24 BP), while gold-linked deposits yield 1.78% (down 2 BP) [5]. - Deposits linked to indices, funds, and stocks show an increase in average expected middle yield to 2.00% (up 1 BP) [5].

Core Viewpoint - The article highlights the continuous decline in bank deposit rates, with many banks entering the "1 era" for medium to long-term rates, indicating a broader trend of decreasing interest rates in the banking sector [1][2][4]. Summary by Sections Bank Deposit Rates - As of June 2025, the average interest rates for various term deposits are as follows: 3-month at 0.949%, 6-month at 1.156%, 1-year at 1.287%, 2-year at 1.372%, 3-year at 1.695%, and 5-year at 1.538% [3]. - Compared to May, the rates have decreased: 3-month by 5.5 basis points (BP), 6-month by 5.6 BP, 1-year by 5.2 BP, 2-year by 5.6 BP, 3-year by 1.6 BP, and 5-year by 3.5 BP [3]. Factors Influencing Rate Changes - The decline in deposit rates was anticipated following the People's Bank of China's (PBOC) reduction of the Loan Prime Rate (LPR) on May 20, which led major banks to lower their deposit rates by up to 25 BP [3][4]. - The ongoing marketization of interest rates and the pressure on banks' net interest margins are contributing to the trend of decreasing deposit rates [4][5]. Large Certificates of Deposit (CDs) - The average interest rates for large CDs have also decreased, with 3-month at 1.179%, 6-month at 1.391%, 1-year at 1.477%, 2-year at 1.462%, 3-year at 1.768%, and 5-year at 1.700% [7]. - The decline in rates is more pronounced for longer-term CDs, with significant reductions observed across all terms compared to May [7]. Structural Deposits - The average term for structured deposits has increased to 103 days, with an average expected middle yield of 1.78% and an average expected maximum yield of 2.14% [11]. - The yields for structured deposits linked to various assets have shown mixed trends, with some categories experiencing declines while others, like those linked to indices, have seen slight increases [12]. Future Outlook - Analysts predict that the downward trend in deposit rates will continue due to multiple factors, including the need for banks to manage their funding costs and the overall low-interest-rate environment [13]. - The expectation is that banks will further adjust their deposit rates to mitigate risks associated with high-interest liabilities in a declining rate environment [9][13].

Core Viewpoint - The report indicates a continued decline in bank deposit rates, with many rates entering the "1" era, reflecting a broader trend influenced by market conditions and regulatory changes [1][2][3]. Deposit Rate Trends - As of June 2025, the average interest rates for various term deposits are as follows: 3-month at 0.949%, 6-month at 1.156%, 1-year at 1.287%, 2-year at 1.372%, 3-year at 1.695%, and 5-year at 1.538% [2]. - Compared to May, the rates have decreased across all terms, with the 3-month rate dropping by 5.5 basis points (BP), and the 5-year rate down by 3.5 BP [2]. Market Influences - The decline in deposit rates is anticipated due to the People's Bank of China's (PBOC) recent cuts in the Loan Prime Rate (LPR), which has pressured banks' net interest margins [2][3]. - The net interest margin for commercial banks has narrowed to 1.43%, a decrease of 9 BP from the previous quarter [3]. Large Certificate of Deposit (CD) Trends - The average interest rates for large CDs have also decreased, with the 3-month rate at 1.179% and the 5-year rate remaining unchanged [4]. - The decline in rates has led to a significant reduction in the sales of large CDs, as the interest rate differential between regular deposits and large CDs has diminished [4][5]. Structural Deposit Changes - The average term for structured deposits has increased to 103 days, with an average expected middle yield of 1.78% [7]. - The average expected highest yield for structured deposits varies by bank type, with state-owned banks at 1.99% and foreign banks at 4.34% [7][8]. Future Outlook - Analysts predict that the downward trend in deposit rates will continue, driven by the need for banks to optimize their liability structures and manage costs effectively [5][6]. - The overall market conditions suggest that deposit rates may have further room for decline, influenced by multiple factors including policy rate adjustments and banks' cost control needs [8].

Core Viewpoint - The report from Rong360 Digital Technology Research Institute indicates a continued decline in bank deposit rates, with medium to long-term rates entering the "1 era" and 3-month rates entering the "0 era" [1] Group 1: Deposit Rate Trends - As of June 2025, the average interest rates for various term deposits are as follows: 3-month at 0.949%, 6-month at 1.156%, 1-year at 1.287%, 2-year at 1.372%, 3-year at 1.695%, and 5-year at 1.538% [2] - Compared to the previous month, the rates for 3-month, 6-month, 1-year, 2-year, 3-year, and 5-year deposits have decreased by 5.5 BP, 5.6 BP, 5.2 BP, 5.6 BP, 1.6 BP, and 3.5 BP respectively [2] - The report also highlights that large-denomination certificates of deposit (CDs) have seen a decline in average rates across all terms, with the 3-month rate dropping by 5.96 BP and the 1-year rate by 8.39 BP [2] Group 2: Structured Deposits - In June 2025, the average term for RMB structured deposits was 103 days, an increase of 13 days from the previous month, while the average expected intermediate yield was 1.78%, down by 7 BP [3] - The average expected maximum yield for structured deposits was 2.14%, which decreased by 11 BP compared to the previous month [3] - Different types of banks showed varying average terms and yields for structured deposits, with state-owned banks at 70 days and an expected maximum yield of 1.99%, while foreign banks had an average term of 334 days and a maximum yield of 4.34% [4] Group 3: Performance by Underlying Assets - For structured deposits linked to foreign exchange, the average expected intermediate yield was 1.77%, down by 24 BP, while those linked to gold had a yield of 1.78%, down by 2 BP [4] - Structured deposits linked to indices, funds, and stocks saw an increase in average expected intermediate yield to 2.00%, with the maximum yield rising to 5.40%, an increase of 8 BP [4]

Core Viewpoint - The report from Rong360 Digital Technology Research Institute indicates a continued decline in bank deposit rates, with medium to long-term rates entering the "1 era" and 3-month rates entering the "0 era" [1] Group 1: Deposit Rate Trends - As of June 2025, the average deposit rates for various terms are as follows: 3-month at 0.949%, 6-month at 1.156%, 1-year at 1.287%, 2-year at 1.372%, 3-year at 1.695%, and 5-year at 1.538% [1][2] - The report shows a month-on-month decline in average rates across all terms, with 3-month rates down by 5.5 basis points, 6-month by 5.6 basis points, 1-year by 5.2 basis points, 2-year by 5.6 basis points, 3-year by 1.6 basis points, and 5-year by 3.5 basis points [2] Group 2: Large Certificate of Deposit Rates - For large certificates of deposit, the average rates in June 2025 are: 3-month at 1.179%, 6-month at 1.391%, 1-year at 1.477%, 2-year at 1.462%, 3-year at 1.768%, and 5-year at 1.700% [2] - All terms for large certificates of deposit also experienced a decline, with the 3-month rate down by 5.96 basis points, 6-month by 6.74 basis points, 1-year by 8.39 basis points, 2-year by 18.67 basis points, and 3-year by 30.01 basis points [2] Group 3: Structured Deposit Trends - The average term for RMB structured deposits in June 2025 is 103 days, an increase of 13 days from the previous month, with an average expected middle yield of 1.78%, down by 7 basis points [3] - Different types of banks show varying average terms for structured deposits, with state-owned banks at 70 days, joint-stock banks at 90 days, city commercial banks at 164 days, and foreign banks at 334 days [3] Group 4: Performance by Linked Assets - For structured deposits linked to different assets, the average expected middle yield for those linked to exchange rates is 1.77%, down by 24 basis points, while those linked to gold yield 1.78%, down by 2 basis points [4] - Structured deposits linked to indices, funds, and stocks show an average expected middle yield of 2.00%, which is an increase of 1 basis point, with the highest expected yield at 5.40%, up by 8 basis points [4]

Core Viewpoint - In the first half of 2025, China faces increasing internal and external challenges, leading to a moderately loose monetary policy by the central bank to support economic recovery and maintain liquidity [1][2]. Monetary Policy Overview - The central bank implemented a moderately loose monetary policy to address external shocks and maintain liquidity, balancing short-term and long-term goals [2][12]. - Key actions included adjusting the medium-term lending facility, increasing targeted loans for consumption and agriculture, and lowering policy interest rates [3][12]. Market Operations - The monetary policy operations in the first half of 2025 featured a focus on optimizing interest rate control mechanisms and enhancing structural monetary policy tools [3]. - A 0.5 percentage point reserve requirement ratio cut was implemented, alongside various liquidity support measures [3][12]. - The central bank temporarily paused government bond purchases to maintain market stability [3]. Market Performance - The interbank market saw a total transaction volume of 786.23 trillion yuan, a decrease of 7.13% year-on-year, with pledged repos dominating the market [6]. - The issuance of interbank certificates of deposit surged, with a total issuance of 17.4 trillion yuan in the first half of 2025, reflecting a 6.6% increase year-on-year [7][8]. Interest Rate Trends - The first half of 2025 saw a three-phase interest rate trend: initial tightening due to deposit management, followed by easing as liquidity improved, and finally a slight tightening due to increased special bond issuance [5][13]. - The average interest rates for one-year interbank certificates of deposit decreased to around 1.65% by the end of June 2025 [8][15]. Future Outlook - The second half of 2025 is expected to maintain a moderately loose monetary policy, with continued support for economic recovery and low inflation [16][17]. - The central bank is likely to utilize various policy tools to enhance the transmission of monetary policy and support the real economy [17][18].

Core Viewpoint - The trend of decreasing business loan interest rates is emerging, similar to the previous competition in consumer loan rates, with some banks offering rates below 3% and even as low as 2.15% for secured loans [1][2][3]. Group 1: Current Interest Rate Trends - Many banks, including state-owned and joint-stock banks, are now offering business loan rates below 3%, with some products like "mortgage quick loans" available at rates as low as 2.60% [2]. - In regions outside Guangdong, such as Sichuan, banks are also offering competitive rates, with one bank providing a 1-year mortgage-backed business loan at 2.15% for high-quality collateral [2]. - Some larger banks maintain higher rates, with one reporting a pure credit business loan rate of 3.6% and a secured loan rate around 3% [3]. Group 2: Factors Influencing Rate Changes - The decline in business loan rates is attributed to insufficient credit demand from economic entities and policy initiatives aimed at reducing financing costs for the real economy [1][7]. - The People's Bank of China has reported a slowdown in the growth of short-term and medium-term business loans, indicating a decrease in demand [8]. Group 3: Implications for Banks - Lower business loan rates may compress net interest margins and reduce banks' profitability, particularly affecting smaller banks more than larger ones due to their reliance on interest income [9][10]. - Experts suggest that banks should innovate financial products and focus on effective market demand to balance business expansion and asset quality [9][10].

Core Viewpoint - A price war for business loans among banks targeting small and micro enterprises has emerged following tightened regulations on consumer loans, with many banks lowering interest rates to below 3% [1][8]. Group 1: Business Loan Interest Rates - Several banks, including state-owned and joint-stock banks, have reduced business loan interest rates to below 3%, while some smaller banks struggle to keep up [1][8]. - The interest rate for the "Business Loan" product from China Merchants Bank is as low as 2.68%, with a maximum loan amount of 20 million yuan [3][6]. - The approval process for business loans has improved, with some banks reducing the approval time for loans under 1 million yuan to as little as 3 working days [6][12]. Group 2: Market Competition and Disparities - The competition in the business loan market has intensified, with significant interest rate disparities among banks, particularly between large state-owned banks and smaller regional banks [8][9]. - Some regional banks in the northeastern part of China have interest rates above 4%, while banks in the southeastern coastal regions offer rates below 2.5% due to a more favorable credit environment [8][9]. - The use of big data models for risk assessment has led to a more uniform interest rate for similar clients, but it has also given rise to issues with intermediaries manipulating client information to secure better loan terms [9][10]. Group 3: Commercial Logic Behind Low Rates - Banks are promoting low-interest business loans as a strategy to attract creditworthy clients, which can lead to additional revenue from services like payroll and wealth management [11][12]. - Despite the decline in business loan interest rates, the actual loan disbursement may not meet expectations due to increased difficulty in acquiring quality small and micro clients [12]. - Future trends may see further segmentation in the business loan market, with more specialized products tailored to specific industries and scenarios [12].