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CHINA PRESS: Bank Deposit Cuts Are Boosting Wealth Management

CHINA PRESS

China’s deposits fell in July as banks lowered their deposit interest rates, which pushed funds into wealth management and treasury bonds, according to Zhou Maohua, macro researcher at Everbright Bank. Data showed RMB deposits increased by CNY10.7 trillion in the first seven months, down from CNY11.5 trillion during H1, while CITIC Securities noted July saw wealth management funds increase by about CNY1.78 trillion. Zhou said deposit rates could fall further in H2 but will not lead to a widescale re-allocation of deposits given that the return gap between bank deposits and wealth management products was not large. 

MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

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