Looser funding conditions have driven a marked decline in the term deposit rates of Chinese commercial banks in July.
Figures from the Rong360 Big Data Research Institute indicate that the term deposit rates of Chinese commercial banks posted a near comprehensive decline in July.
The six month, one year, two year and three-year term deposit rates fell by 0.2BP, 0.1BP, 0.5BP and 1BP respectively compared to June, while the three month rate held steady.
Only the five year term deposit rate posted an on-month rise in July, increasing by 0.9BP.
Fu Ying (付影), a researcher with Rong360, said that a rise in either deposit rates or jumbo certificate of deposit rates is unlikely in August, given current macro-economic conditions and monetary policy in China.