Chinese Banks Set to Cut Rates on Massive Deposits

Chinese banks, including major names like Industrial & Commercial Bank of China, plan to reduce interest rates on 300 trillion yuan in deposits. This move, driven by the central bank's directives, sees one-year time deposits decreasing by at least 20 basis points and longer tenors dropping by 25.

Major Chinese banks are poised to lower interest rates on 300 trillion yuan worth of deposits this week, informed sources told Bloomberg News. This move follows guidance from the central bank's self-disciplinary mechanism for interest rates.

Prominent banks, including the Industrial & Commercial Bank of China and the China Construction Bank Corp, are expected to implement these changes, affecting a range of deposit products.

Reportedly, one-year time deposits will see a rate reduction of at least 20 basis points, with longer-term deposits experiencing cuts of at least 25 basis points. The currency exchange rate stands at $1 to 7.1091 Chinese yuan renminbi.

(With inputs from agencies.)