With the start of the new year 2023, the market for large certificates of deposit has become more popular, with many banks even “tapping” and “selling” large certificates of deposit.
A bank asset management manager said, “Certificates of deposit with a maximum amount of 600 million yuan a day were sold out in 20 minutes on the shelves, and certificates of large deposits were popular.” There are currently very few certificates of deposit for sale, and it is impossible to buy them even if they have been designated in advance.
"Since last year, the bond market and stock market have undergone turbulent reforms. Since the net asset shift in wealth management, the problem of 'breaking the grid' has also occurred. Residents' risk appetite has decreased and demand for assets has decreased. Protection has increased .The large certificates of deposit channel is an investment backed by capital, so demand has expanded.CITIC Securities chief economist Ming Ming spoke about the background of the deposit rate reform in an interview with Securities Daily: Deposit rates expected to fall in the future. Investors tend to buy savings products as quickly as possible to earn returns.
A reporter from "Securities Daily" recently visited a major bank branch in Beijing and found that the sales of famous certificates of deposit were relatively hot, and many citizens came to buy them. .
In an interview, most bank financial managers told reporters: "As the Chinese New Year approaches, stable investors have recently become interested in a large number of certificates of deposit, which have been sold in minutes."
Currently, interest rates on large deposits are falling significantly. For example, the annual interest rate on large deposits with a maturity of 3 years has been reduced to around 3% in most banks, but the phenomenon of "difficulty in finding certificates" has not been eliminated.
Dong Simiao, senior researcher at the China Merchant Finance Association, told reporters that the savings of Chinese residents have increased rapidly in recent years, especially in 2022, residents' preference for investment risk and financial management will decrease significantly, and the growth rate of residents' savings will be very high. It's fast. Interest rates on large-capacity certificates of deposit are higher than deposits of the same period, and because they are usually longer to maturity, they help lock in relatively high current rates in times of low interest rates. In general, residents were welcome.
In recent years, regulators have repeatedly emphasized “reducing the cost of corporate finance and personal consumer debt.” Interest rates on growing loans and stocks are expected to remain low, and commercial banks' net interest margins remain low. It's under pressure. In this context, industry experts still see the possibility of lowering deposit rates.
"Given the current situation, a decline in the risk-free rate is a general trend in the market." Dong Simiao said lowering the deposit interest rate would reduce the income of residents who prefer to save, but it would also have many positive effects. reduced real economy financing; Second, it limits banks' irrational competition for deposits and better protects against financial risks. Finally, reduce your mid- to long-term debt. Interest rates on deposits help reduce the “price gap” between short-term and medium-term deposits. It makes the term structure of bank deposits more reasonable.
Comments are closed