Core Viewpoint - Since September, local small and medium-sized banks have been continuously lowering deposit interest rates to alleviate net interest margin pressure and follow the lead of larger banks [1][3]. Group 1: Deposit Rate Adjustments - On September 25, several banks in Henan, including Luoyang Rural Commercial Bank, announced reductions in RMB deposit rates, with the highest cut reaching 35 basis points [2][3]. - The new rates for fixed-term deposits at Luoyang Rural Commercial Bank are now 0.75% for three months, 1.00% for six months, 1.30% for one year, and 1.35% for two years, reflecting a reduction of 15 basis points [3]. - Other banks, such as Jieyang Rural Commercial Bank and Shanghai Huarui Bank, have also lowered rates across various deposit products, indicating a broader trend among local banks to adjust rates following national banks [3]. Group 2: Retail Deposit Trends - There is a noticeable outflow of retail deposits as customers shift to investment products with higher returns, such as cash management and fixed-income bank wealth management products, which offer annual yields of 2% to 3% [2][5]. - Retail deposit growth has significantly slowed, with banks facing challenges in attracting new customers and retaining existing deposits [5][6]. - Data shows that major banks like China Merchants Bank and Ping An Bank experienced a decline in retail deposit growth rates in the first half of 2025 compared to the same period in 2024, with decreases of 3.43 and 3.73 percentage points, respectively [8]. Group 3: Wealth Management Strategies - In response to declining retail deposits, banks are focusing on expanding their wealth management services, leveraging the recent bullish trends in capital markets [9][10]. - Wealth management products, particularly those linked to equity funds, are becoming key revenue drivers for banks as they seek to retain customer assets [9]. - The "fixed income plus" product category is seen as a new pathway for banks to attract deposits in a low-interest-rate environment, highlighting the need for diversified investment options [10].

Core Viewpoint - The trend of lowering deposit interest rates among local small and medium-sized banks has been expanding since September, with significant adjustments impacting various deposit products [1] Group 1: Deposit Rate Adjustments - Several banks, including Henan Luoyang Rural Commercial Bank and Luoning Rural Commercial Bank, announced reductions in RMB deposit rates on September 25, with the maximum decrease reaching 35 basis points [1] - The adjustments cover a range of deposit products, including demand deposits, notice deposits, and fixed-term deposits [1] Group 2: Retail Deposit Trends - There has been a noticeable outflow of retail deposits recently, prompting banks to focus on wealth management strategies to mitigate the negative impact of this outflow [1] - Increasing the management of client asset scale (AUM) has become a primary strategy for many banks to address the challenges posed by declining deposits [1] Group 3: Investment Shifts - The attractive performance of cash management and fixed-income bank wealth management products, with annual yields close to 2% to 3%, has led many bank customers to change their investment strategies [1] - Customers are increasingly purchasing mixed and equity fund products as a result of the "price comparison effect" [1]

Core Viewpoint - The retail deposit growth of several listed banks has slowed down significantly, prompting banks to adjust their strategies towards wealth management to mitigate the impact of deposit outflows [1][2][5][6]. Group 1: Retail Deposit Growth Comparison - In the first half of 2025, several banks experienced a notable decline in retail deposit growth compared to the same period in 2024, with specific decreases of 3.43 percentage points for China Merchants Bank and 3.73 percentage points for Ping An Bank [1][6]. - Other banks such as Beijing Bank, Ningbo Bank, Hangzhou Bank, and Suzhou Bank also saw significant reductions in their retail deposit growth rates, with declines ranging from 4.57 to 9.88 percentage points [1][6]. Group 2: Interest Rate Adjustments - Since September, a growing number of local small and medium-sized banks have lowered their deposit interest rates, with some banks announcing reductions of up to 35 basis points [1][3]. - This trend follows a broader "rate cut wave" initiated by large state-owned banks earlier in the year, aimed at alleviating pressure on net interest margins [3][4]. Group 3: Wealth Management Strategies - In response to the noticeable outflow of retail deposits, banks are increasingly focusing on wealth management to grow their assets under management (AUM) [2][7]. - The performance of cash management and fixed-income bank wealth management products, with annual yields between 2% and 3%, has led many customers to shift their investment strategies [2][7]. - Banks are also expanding their offerings in public funds and cash management products, which are perceived as lower risk and more cost-effective compared to traditional fixed-term deposits [7].

Group 1 - The core viewpoint of the articles highlights the significant performance of equity-based wealth management products, with over 40 products showing positive annualized returns, and 17 products exceeding 10% returns, driven by a recovering capital market and supportive macro policies [1][2][3]. Group 2 - As of August 3, there are 46 publicly offered equity-based wealth management products, with 43 showing positive returns, representing 93% of the total, indicating a strong recovery in the equity market [1][2]. - The average net value growth rate for equity-based wealth management products this year is 5.82%, outperforming fixed income and mixed products, which have average growth rates of 1.26% and 1.56%, respectively [2]. - The maximum drawdown for fixed income products is only 0.19%, while mixed products have a higher drawdown of 1.26%, showcasing the stability of fixed income products [2]. Group 3 - The increase in equity product performance is attributed to improved market sentiment and policy support, allowing banks to invest more in equity markets through various channels like IPOs and ETFs [3]. - The implementation of new regulations in January 2025 has opened up new avenues for wealth management companies to diversify their asset allocations, responding to the demand for higher returns from clients [3]. Group 4 - Despite the strong performance of equity-based products, their market size remains relatively small, with the total wealth management market reaching 30.67 trillion yuan, where fixed income products dominate at 29.81 trillion yuan [4]. - The preference for fixed income assets is expected to decline as the yield center decreases, leading to an increased allocation towards equity assets in the future [4].