Core Insights - A significant shift in deposit behavior is occurring, with over 1.1 trillion RMB withdrawn from banks in July, indicating a trend of "deposit migration" among the public [3][4][5] - The decline in bank deposit interest rates is a primary driver of this migration, with rates for savings accounts falling below 0.3% and three-year fixed deposits around 1.25% [4][5][6] - Non-bank financial institutions are seeing a substantial increase in deposits, with a rise of 1.65 trillion RMB in July, highlighting a clear shift in where individuals are placing their funds [3][4] Deposit Migration Trends - The average decrease in household deposits in July exceeded the average growth from 2018 to 2024, showcasing an unprecedented scale of withdrawal [4] - The banking wealth management market has become a major beneficiary of this trend, with a total scale exceeding 30 trillion RMB, particularly in fixed-income products [5][6] - The stock market has also attracted significant investment, with the A-share market experiencing a notable increase in trading activity and new account openings [7][8] Investment Shifts - Public funds, especially bond funds, are gaining popularity, with average yields surpassing 4%, making them attractive compared to traditional bank deposits [9][10] - Insurance financial products are also performing well, with some companies reporting investment returns exceeding 5%, appealing to long-term investors [10][11] Regional Differences - There are notable regional disparities in deposit migration, with higher per capita deposits in first-tier cities, but a more active migration behavior observed in these areas due to greater financial literacy [12] Banking Response - In response to the outflow of deposits, banks are implementing various strategies, including promoting their own wealth management products and innovating product offerings to retain customers [13] Future Outlook - The trend of deposit migration is expected to continue, driven by ongoing interest rate marketization and an increasing acceptance of investment risks among residents [15][16]