Core Viewpoint - Jiangsu Bank's stock price increased by 1.26% on August 20, 2025, reflecting positive market sentiment and trading activity [1] Group 1: Stock Performance - As of August 20, 2025, Jiangsu Bank's stock price was reported at 11.25 yuan, with a trading volume of 2.1179 million shares and a transaction value of 2.398 billion yuan [1] - The stock opened at 11.07 yuan, reached a high of 11.50 yuan, and a low of 11.07 yuan, resulting in a price fluctuation of 3.87% [1] - The net inflow of main funds on August 20 was 170 million yuan, accounting for 0.08% of the circulating market value [1] Group 2: Banking Operations - Jiangsu Bank is a significant urban commercial bank in Jiangsu Province, primarily engaged in corporate banking, personal banking, and funding operations [1] - The bank has a wide network of branches throughout Jiangsu Province, enhancing its market presence [1] Group 3: Interest Rate Adjustment - Jiangsu Bank announced a reduction in the three-year fixed deposit interest rate by 10 basis points to 1.75%, with a minimum deposit amount of 10,000 yuan, effective from August 20 [1] - The one-year and two-year fixed deposit interest rates remain unchanged, aligning with the trend of several small and medium-sized banks lowering deposit rates [1] - The primary objective of this adjustment is to control liability costs and stabilize net interest margins [1]

Core Insights - The recent interest rate cuts by six major state-owned banks in China reflect a significant shift in the financial landscape, indicating a transition from a high-savings model to one that stimulates consumption [1][9] - The adjustment in deposit rates directly impacts the distribution of approximately 152 trillion yuan in household savings [1] Group 1: Interest Rate Changes - The six major banks have lowered their demand deposit interest rates to 0.05%, resulting in a significant reduction in interest income for depositors [1] - For a 100,000 yuan deposit over five years, the interest earned is now only 6,500 yuan, a decrease of 1,500 yuan compared to 2024 [1] Group 2: Analysis of Deposit Rates - The regular fixed deposit rates among the six banks are largely uniform, with a one-year deposit rate set at 0.95%, while Postal Savings Bank offers slightly higher rates for certain terms [2] - Upgraded fixed deposit products with higher interest rates are available but come with higher minimum deposit requirements, such as 50,000 yuan [4] Group 3: Economic and International Influences - The growth rate of household deposits has dropped to 5.2%, the lowest in a decade, prompting the government to lower interest rates to redirect funds towards consumption and investment [4] - The interest rate cuts in China are also a response to global monetary policy trends, including recent rate cuts by the Federal Reserve and the European Central Bank [4] Group 4: Strategies for Depositors - Depositors are encouraged to adopt flexible deposit terms, utilize hidden bank benefits, and compare rates across banks to optimize their savings [5][7] - Diversifying investment strategies and considering policy savings products, such as government bonds, are recommended to safeguard wealth in a low-interest environment [7] Group 5: Future Outlook - Predictions suggest that further interest rate cuts of 5-10 basis points may occur in the latter half of 2025, necessitating adjustments in depositor strategies [5][9] - Banks are likely to introduce more innovative deposit products linked to market variables, while regulatory measures may be implemented to manage deposit rate competition [5][9]

Report Industry Investment Rating - No clear industry investment rating is provided in the report. Core View of the Report - The view is to hold positions firmly. Although the reasons for the bond market's rise today seem unconvincing and further observation is needed, the current interest rate level and capital center are still favorable for allocation funds, and long - position holders should hold their chips [1][3] Summary by Related Catalogs 1. Disk Review - Treasury bond futures opened higher and then declined in the morning, fluctuated narrowly in the afternoon, and rallied across the board at the close. The capital interest rate remained low, with the overnight DR closing below 1.4%. The open market had a net withdrawal of 600 million yuan, and liquidity remained abundant [1] 2. Intraday News - The Ministry of Finance and the Ministry of Housing and Urban - Rural Development organized the 2025 evaluation of central - fiscal support for urban renewal actions. 20 cities are proposed to be supported, including Beijing, Tianjin, Tangshan, etc. [2] 3. Market Judgment - The bond market trading has been relatively dull recently. After the adjustment of deposit interest rates, the bulls lack sufficient upward momentum. Neither data releases nor capital levels can truly constitute negative factors. In this uncertain environment, short - term factors such as CD price increases and the seesaw effect of risk assets have an amplified impact on the market. The reasons for the bond market's rise today seem unconvincing, and further observation is needed [3] 4. Data Overview - **Contract Prices and Changes**: TS2509 rose 0.04 to 102.392, TF2509 rose 0.05 to 106.01, T2509 rose 0.06 to 108.73, and TL2509 rose 0.05 to 119.5 [4] - **Contract Positions and Changes**: TS contract positions decreased by 1185 to 119,964 hands, TF contract positions increased by 1800 to 164,943 hands, T contract positions increased by 4148 to 194,988 hands, and TL contract positions increased by 1114 to 114,724 hands [4] - **Basis and Changes**: TS basis (CTD) rose 0.0086 to - 0.0741, TF basis (CTD) rose 0.0091 to - 0.0175, T basis (CTD) rose 0.0683 to 0.023, and TL basis (CTD) fell 0.0567 to 0.4113 [4] - **Transaction Volume and Changes**: TS main contract trading volume decreased by 6072 to 31,202 hands, TF main contract trading volume decreased by 1213 to 46,001 hands, T main contract trading volume increased by 12841 to 55,709 hands, and TL main contract trading volume increased by 9425 to 70,260 hands [4] - **DR Interest Rates and Changes**: DR001 fell 0.0686 to 1.4136%, DR007 fell 0.1149 to 1.5496%, and DR014 fell 0.1392 to 1.5844% [4] - **DR Transaction Amounts and Changes**: DR001 transaction amount increased by 7904.9392 billion yuan to 24,426.9455 billion yuan, DR007 transaction amount increased by 254.423 billion yuan to 1075.1885 billion yuan, and DR014 transaction amount increased by 36.574 billion yuan to 122.9315 billion yuan [4]

Core Viewpoint - Local commercial banks are following the trend of national banks by gradually lowering their deposit rates, which diminishes their previous interest rate advantage over national banks [1] Summary by Category Deposit Rate Adjustments - Various local commercial banks are reducing their deposit rates in line with national banks [1] - The new deposit rates for Beijing Bank, effective from May 27, are as follows: 1-year at 1.15%, 2-year at 1.20%, 3-year at 1.30%, and 5-year at 1.35% [1] - The adjusted rates for Beijing Bank are now consistent with those of several joint-stock banks, such as Everbright Bank and Citic Bank, indicating a loss of competitive edge in deposit rates [1]

Core Viewpoint - The continuous decline in RMB deposit rates is forcing savers to adjust their investment strategies, seeking new avenues for income growth, while some private banks are raising deposit rates to attract customers [1][3][7]. Group 1: Changes in Deposit Rates - The RMB deposit rates have been consistently decreasing, impacting savers who traditionally relied on fixed deposits for income [3][4]. - Some private banks, like Yilian Bank, have raised their one-year fixed deposit rates to 2.00%, contrasting with the overall downward trend in deposit rates across major banks [4][8]. - As of May 22, 20 commercial banks have lowered their RMB deposit rates, indicating a widespread trend in the banking sector [8]. Group 2: Shift in Savings Behavior - There is a notable shift of household deposits from banks to non-bank financial institutions, with a decrease of 1.39 trillion yuan in household deposits in April, while non-bank deposits increased by 1.57 trillion yuan [1][7]. - Savers are increasingly exploring alternative investment products, with some finding higher returns in USD deposit products offered by various banks [5][9]. Group 3: USD Deposit Products - Several banks are promoting high-interest USD deposit products, with rates reaching up to 4.2% for six-month deposits, but these often come with conditions [5][9]. - The overall trend for USD deposit rates is also downward, with significant declines observed since the end of 2023 [8][10]. - There are concerns regarding the exchange rate risks associated with USD deposits, as the USD has shown volatility against the RMB [9][10].

Core Viewpoint - Some private banks are raising deposit interest rates against the trend of declining rates in the market, indicating a complex shift in financial strategies among depositors [1] Group 1: Deposit Rate Trends - Recent data shows that the RMB deposit rates are continuously decreasing, leading to a compression of returns for savers [1] - Some private banks have increased their one-year fixed deposit rates to as high as 2% [1] - The overall trend of declining deposit product rates is expected to remain unchanged despite these isolated increases [1] Group 2: Shifts in Depositor Behavior - There is a notable shift of resident deposits towards non-bank financial institutions, with a decrease of 1.39 trillion yuan in resident deposits in April [1] - The increase in non-bank deposits suggests that excess savings accumulated by residents are being redirected towards enterprises and non-bank institutions [1] - This shift complicates the financial choices available to depositors, as they seek new avenues for yield [1] Group 3: Foreign Currency Deposits - Dollar deposit products are gaining attention, with several banks offering high-interest rates, although these often come with conditions and currency exchange risks [1]

Core Viewpoint - Several Chinese banks have announced a reduction in RMB deposit interest rates effective from May 21, 2025, indicating a trend towards lower interest rates in the banking sector [1][2]. Group 1: Interest Rate Adjustments - The seven joint-stock banks, including Ping An Bank, Industrial Bank, Minsheng Bank, CITIC Bank, Huaxia Bank, Guangfa Bank, and Pudong Development Bank, will lower the interest rate on demand deposits from 0.1% to 0.05%, a decrease of 5 basis points [1]. - The fixed deposit rates for 3-month, 6-month, and 1-year terms will be adjusted from 0.85%, 1.10%, and 1.30% to 0.70%, 0.95%, and 1.15%, respectively, each down by 15 basis points [1]. - For 3-year and 5-year fixed deposits, the rates will be reduced from 1.55% and 1.60% to 1.30% and 1.35%, representing a decrease of 25 basis points [1]. Group 2: Specific Bank Adjustments - Minsheng Bank will adjust its 2-year deposit rate from 1.30% to 1.15%, while the other six banks will lower their rates from 1.35% to 1.20%, a reduction of 15 basis points [2]. - Prior to this announcement, China Merchants Bank and Everbright Bank had already adjusted their deposit rates effective May 20, aligning their rates with the six major state-owned banks [2]. - After the adjustments, China Merchants Bank's fixed deposit rates for various terms will be set at 0.65%, 0.85%, 0.95%, 1.05%, 1.25%, and 1.30% for 3-month, 6-month, 1-year, 2-year, 3-year, and 5-year deposits, respectively [2].

Core Points - The six major state-owned banks and China Merchants Bank announced a reduction in the RMB deposit rates effective from May 20, 2025 [1][2] - The adjustment includes a decrease in the interest rate for demand deposits from 0.1% to 0.05%, a reduction of 5 basis points [1] - Fixed-term deposit rates for various terms have been lowered, with 3-month, 6-month, 1-year, and 2-year rates reduced from 0.8%, 1%, 1.1%, and 1.2% to 0.65%, 0.85%, 0.95%, and 1.05% respectively, a decrease of 15 basis points [1] - The 3-year and 5-year fixed-term deposit rates have been reduced from 1.5% and 1.55% to 1.25% and 1.30%, a decrease of 25 basis points [1] - Other deposit products such as zero deposit and fixed deposit with interest withdrawal have also seen a reduction in rates, with 1-year, 3-year, and 5-year rates adjusted from 0.8% and 1% to 0.65% and 0.85% respectively [1] - Postal Savings Bank's 6-month and 1-year fixed deposit rates differ from the other five banks, decreasing from 1.01% and 1.13% to 0.86% and 0.98% respectively, maintaining a 15 basis point reduction [2] Summary by Category Demand Deposits - Demand deposit rates for the six major banks and China Merchants Bank decreased from 0.1% to 0.05%, a reduction of 5 basis points [1] Fixed-term Deposits - 3-month, 6-month, 1-year, and 2-year fixed-term deposit rates reduced from 0.8%, 1%, 1.1%, and 1.2% to 0.65%, 0.85%, 0.95%, and 1.05% respectively, a decrease of 15 basis points [1] - 3-year and 5-year fixed-term deposit rates reduced from 1.5% and 1.55% to 1.25% and 1.30%, a decrease of 25 basis points [1] Other Deposit Products - Rates for zero deposit, fixed deposit with interest withdrawal for 1-year, 3-year, and 5-year periods adjusted from 0.8% and 1% to 0.65% and 0.85% respectively [1] - Postal Savings Bank's rates for 6-month and 1-year fixed deposits adjusted from 1.01% and 1.13% to 0.86% and 0.98%, maintaining a 15 basis point reduction [2]

Core Viewpoint - The adjustment of deposit rates by local small and medium-sized banks continues, with many institutions lowering rates, while a few are increasing them, leading to a phenomenon of inverted rates between short-term and long-term deposits [1][4][5]. Group 1: Deposit Rate Adjustments - Since May, many local small and medium-sized banks have been adjusting their deposit rates, with some long-term deposit rates falling below 2% [1][2]. - For example, the deposit rates at Liaocheng Hunan Rural Commercial Bank were reduced across all terms, with the one-year rate dropping from 1.95% to 1.8%, a decrease of 15 basis points [2]. - In contrast, Xinjiang Korla Fumin Village Bank announced an increase in rates for certain short-term deposits, with the one-year rate rising to 2.0% and the two-year rate to 2.05%, both higher than the three-year and five-year rates [1][4]. Group 2: Market Trends and Predictions - Analysts expect that deposit rates will continue to decline in the second half of the year, with a potential reduction of 20 to 30 basis points anticipated [8]. - The central bank's recent policy changes, including a 0.1 percentage point reduction in policy rates, are expected to lead to further decreases in deposit rates [6][7]. - The overall trend indicates that banks are under pressure to lower their funding costs to maintain net interest margins, which have been narrowing [5].

Core Viewpoint - The recent trend in China's banking sector shows a significant downward adjustment in deposit interest rates, particularly among small and medium-sized banks, with some banks making multiple adjustments within a month [1][2][3] Group 1: Deposit Rate Adjustments - Several small and medium-sized banks have announced reductions in deposit interest rates, with decreases ranging from 5 basis points to 170 basis points [1] - For instance, Qingxu Rural Commercial Bank adjusted its deposit rates for various terms, with the 3-month, 6-month, 1-year, 2-year, 3-year, and 5-year rates set at 1%, 1.2%, 1.6%, 1.7%, 1.9%, and 1.9% respectively [1] - Deqing Rural Commercial Bank also lowered its 1-year, 2-year, 3-year, and 5-year deposit rates by 5, 10, 10, and 25 basis points to 1.65%, 1.7%, 1.95%, and 1.8% respectively [1] Group 2: Impact on Private Banks - Private banks, which previously offered the highest deposit rates, are now significantly lowering their rates, bringing them closer to those of state-owned banks, with some rates even falling below those of joint-stock banks [2] - For example, WeBank announced a reduction in its fixed deposit rates across various terms, with the 5-year, 3-year, 2-year, and 1-year rates all set at 1.60%, reflecting a decrease of 40 basis points for longer terms and 20 basis points for the 1-year term [2] Group 3: Market Dynamics and Future Outlook - According to industry experts, the ongoing decline in deposit rates is influenced by factors such as market competition, customer positioning, and liability structure among different banks [3] - The reduction in deposit rates is expected to help private banks maintain stable interest margins and enhance their development capabilities [3] - As deposit rates decrease and consumer expectations improve, the attractiveness of capital and wealth management markets may increase, leading to continued pressure on banks to lower deposit rates further [3]