Core Viewpoint - The People's Bank of China (PBOC) has addressed the phenomenon of residents' savings deposits being diverted into asset management products, indicating that this trend does not necessarily lead to a loss of deposits for banks, as funds may eventually return to the banking system [2][5]. Group 1: Deposit Trends - By the third quarter of 2025, the growth rate of residents' deposits has shown signs of decline, raising concerns about potential "loss" of bank deposits [1]. - The PBOC noted that since 2024, the interest rates on deposits have been decreasing, with a cumulative drop of 0.5 percentage points for one-year fixed deposits, while cash management products continue to offer higher yields [2][3]. Group 2: Asset Management Products - As of the end of 2025, over 80% of asset management products were allocated to fixed-income assets, with a significant portion directed towards interbank deposits and certificates of deposit, totaling 28.7 trillion yuan, which represents an 18.9% year-on-year increase [3]. - The total assets of asset management products reached 120 trillion yuan by the end of 2025, reflecting a year-on-year growth of 13.1%, with an increase of 13.8 trillion yuan over the year [3][4]. Group 3: Funding Sources and Financial Structure - The balance of funds raised from households and enterprises for asset management products reached 56.3 trillion yuan by the end of 2025, marking a 9.7% year-on-year increase, which is 2.4 percentage points higher than the growth rate of household and enterprise deposits [4]. - The current financial environment in China is characterized by a shift towards direct financing and a more diversified social financing structure, which impacts the asset-liability dynamics of the financial system [4][5].