Addressing FAQs on the Relaunch of Personal Large-Denomination Certificates of Deposit by the Large Four Banks

Research evidence excerpt

Addressing FAQs on the Relaunch of Personal Large-Denomination Certificates of Deposit by the Large Four Banks

Equity Research

4 August 2026 | 10:45AM HKT

CHINA BANKS

Addressing FAQs on the Relaunch of Personal Large-Denomination

Certificates of Deposit by the Large Four Banks

Recently, the “Large Four” banks (ICBC, ABC, BOC, CCB) have relaunched 5-year Shuo Yang, Ph.D.

+852-2978-0701 | shuo.yang@gs.com

personal large-denomination certificates of deposit (CDs). This follows a period of Goldman Sachs (Asia) L.L.C.

more than six months of centralized reductions and product removals. The Large Claire Ouyang

Four banks have now successively resumed the issuance of 5-year personal +852-2978-6686claire.x.ouyang@gs.com|

large-denomination CDs with an interest rate cap of 1.6% and a minimum deposit of Goldman Sachs (Asia) L.L.C.

Rmb 200k. Key questions from investors are: 1) Why have the large banks relaunched

5-year large-denomination CDs? 2) What is the impact on the banks’ NIM? 3)

Comparing deposit rates with bank dividend yields. Our perspective is as follows:

1. Why have the large banks relaunched 5-year large-denomination CDs?

Large Four banks have relaunched personal large-denomination Certificates of

Deposit (CDs), setting a 1.6% interest rate cap. In our view, this initiative is likely not

intended to restart high-interest deposit-taking competition; rather, it serves as a

new tool to facilitate the rollover of existing, maturing deposits. We estimate that the

volume of maturing time deposits for the Large Four banks in 1H26 was Rmb 38tn

(Exhibit 1). The interest rate cap on these newly issued 5-year personal

large-denomination CDs is 1.6%, flat compared to similar CDs issued a year ago. We

also observe that: 1) the interest rate on newly issued 3-year personal