3cardbragrules| A year-on-year decrease of 90%! A-share listed companies ruthlessly abandon call deposit products, and short-term financial management is favored

Source: Huaxia Daily

Bank adjusts the cost of debt3cardbragrulesThis time it is the turn of the "public" business.

Since the beginning of this year, the management of notice deposits has gradually spread from the individual side to the enterprise side, and the function of automatic transfer of public notice deposits has been suspended, and A-share listed companies have invested in notification deposits.3cardbragrulesHas drastically reduced its size.

Recently, Choice data show that from April 16 to May 15 this year, A-share listed companies invested in call deposits of 1.3cardbragrules84 million yuan, down 79% from the previous month3cardbragrules.39%, compared with the same period last year, a decrease of nearly 90%.

By comparison, the scale of financial management has reached a new high since April, and the financial market has grown by more than 2 trillion yuan a month. In this regard, China International Capital Corporation researcher Wei Lulu believes that it is expected to further promote the transformation of corporate deposits into non-silver deposits, and the conversion ratio may be about 30%.

At the same time, the bank wealth management subsidiary is also adjusting the product layout in order to catch this wave of "splash wealth".

Notification deposits of A-share listed companies fell by 90%

"if you deposit for 25 days, the difference in interest will be eight times." On May 21, Mr. Chen, an investor living in Beijing, sighed.

Mr. Chen told the Huaxia Times that he deposited 1 million yuan in the bank at the end of April. Yesterday, he went to withdraw and found that the "automatic transfer" intelligent notice deposit had been removed from the shelves. If calculated according to the interest rate of 1.25% of the notice deposit, the 25-day interest would be close to 800yuan. However, at present, the funds are withdrawn in advance according to the demand rate, and the interest is only 100yuan.

Mr. Chen said that the notice deposit needs to be notified to the bank seven days in advance and can only be withdrawn seven days later. if it is withdrawn in advance, all the funds will be calculated according to the demand interest rate.

Recently, many customers received a phone call from the bank and were told that the intelligent notification deposit product had been removed from the shelves. A staff member of a joint-stock bank told the Huaxia Times that his bank asked each family to inform customers that "dozens of phone calls should be made a day."

On May 22, Bo Wenxi, vice chairman of the China Enterprise Capital Alliance, told the Huaxia Times that recently, some banks have removed their notice deposits, mainly due to the gradual landing of regulatory requirements, and banks have adjusted their public deposit business. For example, China Merchants Bank, Everbright Bank and Xiamen Bank have all announced to stop or adjust the smart notice deposit business.

A reporter from the Huaxia Times noted that compared with 2023, notice deposit management has gradually spread from the individual side to the enterprise side this year, in order to ease the overall debt cost pressure.

A banking insider told the Huaxia Times that "demand" deposits such as notice deposits and agreement deposits account for about 20 per cent of deposits in small and medium-sized banks, driving up the cost on the debt side of banks.

Judging from the data, perhaps due to the decline in smart call deposits, the scale of A-share listed companies investing in call deposits has fallen sharply in the past month.

From April 16 to May 15 this year, A-share listed companies invested 184 million yuan in notice deposits, down 79.39 percent from the previous month, according to Choice. In the same period of the previous year, A-share listed companies invested 1.364 billion yuan in notice deposits. In this way, it has decreased by nearly 90% compared with the same period last year.

"Supervision guides financial institutions to control costs, reduce the size of some high-interest products, and reduce the attractiveness of notification deposit products." Bo Wenxi told the Huaxia Times that the sharp drop in this data is due to the fact that banks are gradually taking off the shelves to notify deposits and adjust their deposit business to the public. On the other hand, it may also be related to the slowdown in profits of listed companies and a reduction in idle funds.

In fact, not only did the scale of notice deposits drop sharply, but the deposit products allocated by listed companies in the first quarter of this year showed an overall decline compared with the first quarter of 2023.

At present, the vast majority of listed companies still regard deposit products as their first choice for capital allocation. The deposit products allocated by listed companies mainly include deposits, time deposits, structured deposits and notice deposits.

Data show that from January to March this year, the purchase of deposit products by A-share listed companies decreased by 62.69% compared with the same period last year, and the subscription volume was 101.632 billion yuan, about 170.753 billion yuan less than the same period in 2023.

Among them, the category with the largest decline was notice deposit products, down 90.49% from the same period last year, while structured deposits, time deposits and ordinary deposits decreased by 62.13%, 26.58% and 62.64% respectively compared with the same period last year.

Xie Ying, a mainland financial partner at PricewaterhouseCoopers, said that some banks' agreed deposits and call deposits were overpriced because of the fierce competition for deposits. This interest rate adjustment will regulate the pricing order of agreed deposits and call deposits.

Short-term financial products are favored

On May 14, China International Capital Corporation reported that since 2024, the interest rate of deposit listing has declined a lot, while the overall return of financial management due to the downside of bond yields is higher, which makes the income attractiveness of financial management.

Since the beginning of this year, the balance growth rate of the financial subsidiaries of many banks has increased significantly, among which short-term wealth management products take into account both income and liquidity, or are more favored by enterprises, while the allocation of "short-term bonds" by bank financial subsidiaries has been significantly enhanced, and the scale of newly issued products has increased significantly.

Wang Ziyu, a researcher at China International Capital Corporation, believes that a large number of demand deposits use financial management as an alternative product, increasing the pressure and proportion of financial management to allocate short-term bonds. If the difference between financial management and fixed deposit income is too large, we should pay attention to the possible direct pressure of centralized redemption, as well as indirect pressure on the bond market.

In this regard, Huachuang Securities Chief Macro analyst Zhang Yu also said that as bond prices rise, the rate of return on investment in related financial products rises, and the situation of corporate demand deposits "moving" to financial management is also more obvious.

According to Puyi standard data, the size of new short-term wealth management products was 403.383 billion yuan in the first quarter of 2024, an increase of 43.537 billion yuan over the fourth quarter of 2023. The product with a duration of "3-6 months" has the largest new scale, an increase of 53.482 billion yuan compared with the fourth quarter of 2023.

"Financial management for 'high-interest' deposits, non-standard and other assets availability decline, may have to passively increase the proportion of bond allocation, especially short-term bonds." Huatai Securities mentioned in the latest research report that the allocation pressure of financial management will also be transmitted to monetary funds and short-term debt funds, bringing short-term allocation demand.

Wang Jie, a researcher at Puyi Standards, said that in general, the shorter the duration of a fixed-rate bond, the lower its sensitivity to interest rate fluctuations. In order to control product retractions and comply with market demand, wealth management companies are also constantly strengthening the allocation of short-term, highly liquid assets.

Judging from the data, the scale of financial management in the past two months has continued to hit new highs for the year. Data from Huaxi Securities showed that from May 6 to 12, the month-on-month increase was 175.7 billion yuan to 29.42 trillion yuan.

Guosen Securities believes that in terms of scale, it is highly certain that the entire industry will break through 30 trillion yuan, which will better match the supply of subsequent bond issuance. In terms of structure, cash and short-term debt products are still the focus of products, especially the current high-margin of safety for short-term asset returns, which is a good substitute for cash management products.

At the same time, the Guosen Securities Research Report also mentioned that in terms of breakthroughs, the issuance of multi-asset strategies has increased, and rights-based financial management has received continued attention. In addition to cross-border, high dividend and other revenue-increasing strategies, since the second quarter, the issuance of products including commodities (mainly gold) and indices has accelerated particularly.