Core Viewpoint - Recent adjustments in fixed deposit products by banks, particularly the cancellation of five-year fixed deposits by some banks, highlight a broader trend of declining deposit rates among small and medium-sized banks in response to net interest margin pressures [2][3][4]. Group 1: Bank Adjustments - The announcement from Tuoyang County Mengyin Village Bank and Kundu Lun Mengyin Village Bank to cancel five-year fixed deposits marks them as the first commercial banks in the industry to take this step [2]. - Several small and medium-sized banks have followed suit, with some deposit products seeing rate reductions exceeding 60 basis points [3]. - For instance, Hainan Baoting Rongxing Village Bank adjusted its one, two, three, and five-year fixed deposit rates to 1.2%, 1.25%, 1.6%, and 1.65%, reflecting decreases of 65BP, 55BP, 20BP, and 15BP respectively from August levels [3]. Group 2: Interest Rate Trends - The trend of declining deposit rates is a response to significant net interest margin pressures, with the net interest margin for commercial banks reported at 1.42% in Q2 2025, down 0.01 percentage points from Q1 [4]. - A notable "term inversion" phenomenon is occurring, where long-term deposit rates are lower than short-term rates, as seen with Xinjiang Manas Rural Commercial Bank's three-year rate at 1.35% and five-year rate at 1.30% [4]. - Major banks, including China Construction Bank, are also experiencing similar trends, with their three-year fixed deposit rates exceeding five-year rates by 25 basis points [5]. Group 3: Strategic Responses - Banks are actively seeking to lower their funding costs by reducing long-term liabilities and adjusting their product offerings, as indicated by the absence of five-year large denomination deposit products in many major banks [6][7]. - The banking sector is focusing on enhancing non-interest income through wealth management and custodial services while stabilizing net interest margins [7]. - Analysts suggest that the downward trend in interest income for commercial banks may ease due to factors such as improved loan pricing and risk matching, better performance in the capital market, and accelerated digital transformation [8]. Group 4: Implications for Investors - Traditional reliance on long-term fixed deposits for wealth preservation is being challenged, prompting financial advisors to recommend diversifying into government bonds, savings-type insurance, and low-risk bank wealth management products [8]. - Investors are encouraged to adapt their financial strategies in response to the declining interest rate environment to meet their wealth management needs effectively [8].

Core Viewpoint - The cancellation of the five-year fixed deposit product by the Tongyu County Mengyin Village Bank marks a significant shift in the banking industry, potentially indicating expectations of declining interest rates and pressure on interest margins [1][3]. Summary by Sections Cancellation of Five-Year Fixed Deposit - The Tongyu County Mengyin Village Bank announced the cancellation of its five-year fixed deposit product effective November 5, 2025, making it the first bank to do so in the industry [1][3]. - The bank adjusted its deposit rates, lowering the one-year rate from 1.50% to 1.45%, the two-year rate from 1.60% to 1.55%, and the three-year rate from 1.95% to 1.85% [3][4]. Industry Context - Several other small and medium-sized banks have recently lowered their deposit rates, with some reductions reaching up to 80 basis points, yet they continue to offer five-year fixed deposit products [5]. - The cancellation of the five-year product is unprecedented, as banks typically opt to withdraw three-year or five-year large deposits instead [5][6]. Comparison with Larger Banks - Major banks such as Industrial and Commercial Bank of China and China Merchants Bank still offer five-year fixed deposit products, with rates of 1.55% and 1.30% respectively [6][7]. - The differing strategies among banks regarding fixed deposit offerings may be influenced by their unique liability situations and the need to balance deposit scales under interest margin pressures [7].

Core Viewpoint - The company reported its 2025 semi-annual results, showing a slight increase in revenue but a decline in net profit, indicating mixed performance amid a challenging economic environment [1] Financial Performance - In the first half of 2025, the company achieved operating revenue of 427.09 billion yuan, a year-on-year increase of 1.57%, while net profit attributable to ordinary shareholders was 168.10 billion yuan, down 1.39% year-on-year [1] - As of the end of Q2, total assets reached 52.32 trillion yuan, up 11.04% year-on-year, and total loans amounted to 30.19 trillion yuan, an increase of 8.44% year-on-year [1] - The non-performing loan (NPL) ratio remained stable at 1.33%, while the NPL coverage ratio increased by 2.01 percentage points to 217.71% [1] Loan and Investment Trends - Government financing has driven rapid growth in investment assets, with corporate loans showing slight weakness due to demand slowdown and policy impacts [2] - The bank's loan growth outpaced the industry average, reflecting its leading position [2] - The bank's total assets were significantly boosted by a 46.5% year-on-year increase in repurchase agreements [2] Interest Margin and Fee Income - The net interest margin for Q2 was 1.27%, down 6 basis points quarter-on-quarter and 11 basis points year-on-year, indicating a trend towards stabilization in interest margin pressure [2] - Fee and commission income showed signs of recovery, with a year-on-year increase driven by growth in corporate wealth management [3] Asset Quality and Risk Management - The overall asset quality remained stable, with the NPL ratio at a near-record low, and proactive measures taken to manage potential risks [4] - The bank's individual loan quality is expected to remain manageable despite rising risks in the broader banking sector [4] Profit Forecast and Investment Recommendations - The company anticipates a gradual improvement in operating income and net profit from 2025 to 2027, with projected revenues of 829.2 billion yuan, 834.4 billion yuan, and 887.3 billion yuan respectively [5] - The bank's strong customer base and diversified business model are expected to support stable operations in a challenging environment, maintaining a "buy" rating [5]

Core Viewpoint - The recent trend of interest rate cuts on deposits by small and medium-sized banks follows the collective reduction by major state-owned banks, aimed at controlling liability costs and responding to competitive pressures in the banking sector [1][4][7] Summary by Relevant Sections Interest Rate Cuts - Since August, nearly 20 small and medium-sized banks, including Jiangsu Bank and Shenzhou Ruifeng Village Bank, have lowered their deposit rates, with three-year and five-year fixed deposit rates generally reduced by 10 to 20 basis points, now below 2% [1][3] - Specific examples include Guangdong Chaozhou Rural Commercial Bank reducing its three-year and five-year rates to 1.3% and 1.35%, respectively, and Jilin Longtan Huayi Village Bank lowering its three-year and five-year rates to 1.75% and 1.70% [2][3] Market Response and Strategies - To alleviate deposit pressure, many banks are introducing higher-yielding large-denomination certificates of deposit (CDs), with rates reaching up to 2.3% for certain products [5][6] - The trend of lowering deposit rates is seen as a response to the competitive landscape created by state-owned banks, which have also reduced their rates, prompting smaller banks to follow suit to manage their liability costs [4][7] Recommendations for Small and Medium-Sized Banks - Experts suggest that small and medium-sized banks should optimize their liability structures, enhance customer retention through technology, and develop differentiated financial products to attract stable funding sources [8] - There is an emphasis on the need for banks to improve their asset-liability management and avoid over-reliance on high-interest deposits, which could lead to unsustainable practices [6][8]

2025.04. 14 本文字数：2248，阅读时长大约5分钟 作者 | 第一财经 王方然 近日，股份制大行、中小银行开始陆续下调银行存款利率，中长期限存款利率降幅在10BP～50BP 不等。目前，多数银行的定期存款的利率普遍低于2%，迈向"1时代"。 第一财经记者注意到，本轮存款利率调降后，出现不少新趋势。存款利率下行、贷款利率上行后，原 本在市场中存在的存贷利率套利空间正在逐渐消失。此外，多家银行利率调降后，出现存款利率期限 倒挂，部分银行五年期存款利率不如一年期存款。 江西江州农商银行于4月9日起调整存款挂牌利率。调整后定存期限利率全线倒挂，1年期、3年期、5 年期存款利率分别为1.5%、1.48%、1.47%。 业内专家认为，银行密集调降存款利率一方面是为了压降负债端成本，缓解日益增加的息差压力；另 一方面，今年年初，中国人民银行多次提及"择机降息降准"， 银行下调存款利率也与宏观政策方向 相契合。 多家银行下调存款利率至2%以下 "上周我们存款利率刚下调过一轮，基本都低至2%以下了。"平安银行深圳某网点工作人员对记者表 示。该行"平安存"产品三年期定存年利率由2.05%下调至1.65%，下调40个基 ...

Core Viewpoint - Private banks and rural banks, once known for high deposit rates, are now actively abandoning high-interest deposit strategies as major banks lower deposit rates below 2% [1][2][3] Group 1: Deposit Rate Adjustments - Many banks have reduced their deposit rates to below 2%, with significant cuts observed in three-year and five-year deposit products [2][3] - For instance, Ping An Bank's three-year fixed deposit rate was lowered from 2.05% to 1.65%, a decrease of 40 basis points [2] - Rural banks like Xingning Zhujiang Village Bank have drastically cut their rates, with two-year, three-year, and five-year fixed deposit rates dropping to 1.50%, 1.60%, and 1.55% respectively [3] Group 2: Trends in Interest Rates - The current round of interest rate adjustments reveals two significant trends: rising consumer loan rates and the emergence of inverted deposit rate structures [4] - Consumer loan rates, which had previously been low, are now increasing, eliminating the arbitrage opportunities that existed between deposit and loan rates [4] - In some cases, banks are offering lower rates for longer-term deposits compared to shorter-term ones, indicating a shift in deposit strategies [4][5] Group 3: Underlying Reasons for Rate Cuts - The primary reason for banks lowering deposit rates is to reduce liability costs amid ongoing pressure on net interest margins [8][9] - As of Q4 2024, the average net interest margin for commercial banks was reported at 1.52%, a historical low, with listed banks averaging 1.65%, down 19 basis points from 2023 [8] - The People's Bank of China has indicated a potential for interest rate cuts and reserve requirement ratio reductions, aligning with the banks' strategies to lower deposit rates [9]