Core Viewpoint - The interest rates for large certificates of deposit (CDs) have entered a "zero" era, with banks adopting a strategy of "short-term, high thresholds, and low rates" to adjust their liabilities deeply [1][2] Group 1: Interest Rate Trends - Over 40 banks have reported that the interest rates for products with a maturity of less than one year have generally fallen below 1%, with three-year rates often below 2% and five-year products nearly extinct [1] - The average interest rates for various deposit terms have dropped below 2% as of September 2025, with three-month rates at 0.944% and one-year rates at 1.277% [2] - Major state-owned banks have set the interest rates for one-month and three-month large CDs at 0.9%, indicating minimal returns compared to regular fixed deposits [2] Group 2: Changes in Deposit Products - Banks are increasingly offering short-term products, with many focusing on one-year or shorter maturities, while three-year CDs have seen a significant decline in issuance [1] - Some banks have raised the minimum deposit thresholds for specific products, with certain offerings requiring a minimum of 1 million yuan, reflecting a strategy to manage liabilities more effectively [2][3] Group 3: Market Dynamics and Policy Implications - The narrowing of net interest margins, which have dropped to a historical low of 1.42% as of Q3 2025, is a key driver behind the current adjustments in the banking sector [3] - The ongoing downward pressure on net interest margins necessitates a reduction in high-cost liabilities like large CDs to stabilize margins and support the broader economic policy of lowering financing costs [3][4] - Future strategies may shift from broad interest rate cuts to more structural adjustments, such as controlling the scale of long-term high-interest products and dynamically adjusting product thresholds [3][4]

Core Insights - The phenomenon of "deposit special forces" has faded, with depositors no longer actively seeking high-interest deposits across provinces, marking the end of a trend that began in 2023 [1][2][3] Group 1: Market Trends - The rise of "deposit special forces" was driven by significant interest rate differentiation in the banking sector, where smaller banks offered higher rates compared to state-owned banks [2][3] - A downward trend in deposit rates has been observed since 2025, with major banks and smaller institutions alike reducing their rates, leading to a decrease in the appeal of high-interest deposits [1][4] Group 2: Changes in Deposit Products - Long-term deposit products are disappearing from the market, with several banks announcing the removal of 5-year and even 3-year fixed deposit options [5][6] - The reduction in long-term deposit offerings is attributed to banks facing pressure on their net interest margins, which have reached historical lows [6][7] Group 3: Implications for Depositors - Depositors are now challenged to shift from a single deposit strategy to a diversified asset allocation approach, balancing safety and returns in a low-interest environment [1][4] - The cost of pursuing high-interest deposits across regions has become less justifiable as the interest rate differentials narrow, reducing the incentive for depositors to travel for better rates [4][7]