China's state banks relaunch 5‑year large‑deposit certificates

China’s four major state banks—Bank of China, Agricultural Bank of China, China Construction Bank and Industrial and Commercial Bank of China—have re‑issued 5‑year large‑deposit certificates of deposit (CDs) with a uniform maximum interest rate of 1.60% and a minimum deposit of 200,000 yuan. The move is aimed at stabilising deposit inflows, extending liability durations and easing pressure on net interest margins, which have fallen to historic lows around 1.40%.

At the same time, several regional rural commercial banks in Hubei and Guangdong provinces have raised deposit rates on short‑term products by up to 20 basis points, and some have introduced similar long‑term CDs to prevent deposit outflows to the larger state banks. Analysts note that the 2026 maturity wave of large‑term deposits, estimated at 5‑6 trillion yuan, is driving banks to lock in stable, low‑cost funding for medium‑term credit needs.

The coordinated product launches reflect a broader strategy to match long‑term asset allocation, support the real economy and maintain stability in China’s banking sector amid continued interest‑rate pressure.