Investment Insights - The report discusses the significant upcoming maturity of approximately 67 trillion yuan in household time deposits in 2026, primarily formed after 2020 due to residents' precautionary savings amid uncertainties, with a notable shift from high interest rates above 3% to a low-rate environment where mainstream renewal rates are below 2% [9][15][27] - The potential reallocation of these funds is a focal point of market discussions, as it could impact the preservation and appreciation of household wealth and influence various financial asset prices [9][27] Fund Flow Directions - The report identifies three main directions for the funds from maturing deposits: 1. Renewal of deposits, which remains a default choice for most savers despite low interest rates, as consumption and housing purchases are not expected to dominate in the short term [2][15] 2. Early mortgage repayment, as the current mortgage rates exceed deposit and low-risk investment returns, leading to a high early repayment rate in RMBS, although this is not the primary direction for the funds [17] 3. Investment in both low-risk assets (such as bank wealth management products, bond funds, and insurance) and risk assets (like equity funds and the stock market), with the latter being the most debated potential direction for "deposit migration" [2][15][17] Asset Performance Influence - The ultimate direction of the maturing deposit funds towards low-risk or risk assets will depend on the actual performance of various asset classes, as funds inherently seek to chase better-performing assets and withdraw from underperforming ones [19][27] - Historical market trends indicate that funds tend to rotate based on asset performance, with recent trends showing simultaneous movements in both bond and stock markets due to significant allocations through "fixed income plus" strategies [19][27] Central Bank Perspective - The report highlights that funds from maturing deposits are likely to flow back into the banking system, albeit in a different form, as they transition from household deposits to non-bank institutional deposits [3][20][26] - By the end of 2025, over 80% of asset management products are expected to be directed towards fixed-income assets, with a significant portion returning to bank deposits, indicating a structural change rather than a mass exodus from the banking system [3][20][26]