This year, we’re witnessing history again as the pace of interest rate cuts seems unstoppable. The six major state-owned banks have all issued announcements lowering their posted deposit rates.
Demand deposits: 0.25% -> 0.2%
The 2-year, 3-year, and 5-year fixed deposit rates were cut by 10, 15, and 15 basis points respectively, down to 2.05%, 2.45%, and 2.5%. All have now fallen below 3%. When calculated, this means...Interest on a 1 million yuan 3-year fixed deposit will decrease by 9,000 yuan.
In less than half a year, we’ve already experienced four waves of 'interest rate cuts.' A downward trend in interest rates has become inevitable. Your money can not only be stolen by thieves but also by the times we live in. The era we're in is one where low interest rates have become the norm, and negative interest rates are getting closer.
The low-interest-rate era means that future risk-free returns will be very low, increasingly unable to outpace inflation.
Moreover, unless the trend of residents neither investing nor spending reverses, deposit rates will continue to decline.。
It actually is.To wantA comprehensive boost to investment and consumption。
For us as individuals, either we buy financial products and indirectly participate in investment, or we go out and consume to give the economy a little push. In short, we can't just save, especially not long-term savings, which contribute nothing to the economy.
Of course, this news is positive for bank stocks, as net interest income remains the main source of profit for most commercial banks. With lower interest rates, they pay out less, helping profitability. Coupled with the China-specific valuation concept gaining traction this year, there's still some opportunity here.
$BANK OF CHINA (03988.HK)$ $ICBC (01398.HK)$ $CCB (00939.HK)$ $ABC (01288.HK)$ $BANKCOMM (03328.HK)$
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