Greater China Banks Daily: Banks lift USD deposit rates back above 3% ; China reportedly tightens LGFV offshore bond issuance to contain risks

Research evidence excerpt

Greater China Banks Daily: Banks lift USD deposit rates back above 3% ; China reportedly tightens LGFV offshore bond issuance to contain risks

Global Research

17 July 2026ab

Greater China Banks Daily Equities

ChinaBanks lift USD deposit rates back above 3% ;

China reportedly tightens LGFV offshore bond Banks

issuance to contain risks MayAnalystYan

may.yan@ubs.com

+852-2971 7157

Banks lift USD deposit rates back above 3% Alex Ye

Analyst

Cailian, July 16: Multiple Chinese and foreign banks are raising short-term USD time- S1460522090005

deposit rates, with several products again offering annualized yields above 3%, alex.ye@ubs.com

widening the appeal vs RMB deposits that are generally below 1% for 1-year tenor. +86 755 2215 8858

Among foreign lenders, Bank of East Asia (China) offers new clients placing US$10,000–

Catherine Yang, CFA

50,000 up to 3.40% for 3 months, 3.35% for 6 months and 3.20% for 12 months, with Analyst

higher 12-month rates available for deposits above US$50,000. Metro Bank (China) S1460526010003

advertised even higher rates on July 13, at 3.60%, 3.62% and 3.62% for 3-, 6- and 12- catherine-za.yang@ubs.com

month USD deposits, respectively. Domestic banks also follow. Industrial Bank lifted its +86-755-2215 8860

1-year dollar rate to 3.2% for deposits of at least US$8,000, while ICBC’s one-year USD Helen Li, CFA

deposit rate has risen to 2.80%, vs below 2% last year. Industry experts cite a stronger Analyst

dollar, possible Fed tightening expectations and seasonal FX demand as likely reasons. helen-za.li@ubs.com

+852-2971 6066

China reportedly tightens LGFV offshore bond issuance to contain risks

Bloomberg, July 16: A major Chinese bond regulator is tightening scrutiny of offshore

bond issuance of LGFVs.