Core Viewpoint - The recent discussions on large-denomination certificates of deposit (CDs) highlight a significant disparity in interest rates between state-owned banks and private banks, driven by differences in resource endowment and operational foundations, leading to a "Matthew effect" in the industry [1][4]. Interest Rate Disparity - As of mid-September, large-denomination CDs from state-owned and joint-stock banks generally have interest rates in the "1" range, while some private banks offer rates exceeding 2%, but these products often sell out quickly due to limited availability [2][3]. - For instance, the Industrial and Commercial Bank of China and Agricultural Bank of China offer 1-year, 2-year, and 3-year CDs at rates of 1.20%, 1.20%, and 1.55% respectively, while Ping An Bank offers slightly higher rates of 1.40%, 1.40%, and 1.70% for the same terms [2]. Private Banks' High-Interest Products - Some private banks, like Suzhou Bank, offer 2-year and 3-year CDs at rates of 2.10% and 2.30%, respectively, but these products are often quickly sold out due to high demand [3]. - Other private banks, such as WeBank, have adjusted their rates downwards, with current offerings at 1.55%, 1.60%, and 1.60% for 1-year, 2-year, and 3-year CDs, indicating a trend of decreasing availability of high-rate products [3]. Resource Endowment Differences - The disparity in interest rates is attributed to the resource endowment differences between state-owned and private banks. State-owned banks have strong capital strength and brand recognition, allowing them to attract deposits without relying heavily on high interest rates [4]. - In contrast, private banks face challenges in attracting deposits and often resort to higher interest rates to compete in the market, which can lead to increased operational risks [4]. Active Transfer Market - The transfer market for large-denomination CDs is becoming increasingly active, with some products offering transfer rates exceeding 2%, indicating a strong demand for liquidity and adjusted investor return expectations [5][6]. - Investors are engaging in the transfer market for various reasons, including the need for immediate cash and the desire to reallocate funds into potentially higher-yielding investments as market conditions improve [6][7]. Market Trends and Investor Behavior - Recent trends show a shift in investor behavior, with some individuals opting to transfer their CDs to invest in the stock market, driven by a recovering market and the pursuit of higher returns [7]. - The latest data from the central bank indicates a decline in new household deposits, suggesting a broader trend of funds moving away from traditional savings products towards more dynamic investment opportunities [7].