This will force more people to #RWA and invest in digital US Treasuries. The deposit Intrerest Rate has dropped significantly. Although the original intention was to encourage residents to spend and invest their savings, given the current domestic environment and broader context, how many people are willing to invest real money?

This morning, China Construction Bank, China Merchants Bank, and Agricultural Bank announced a reduction in deposit Intrerest Rate! Both China Merchants Bank and China Construction Bank have cut the six-month, one-year, and two-year rates by 15 basis points, to 0.65%, 0.85%, 0.95%, and 1.05%, respectively. The three-year and five-year rates have been reduced by 25 basis points, down to 1.25% and 1.3%, respectively. The one-year rate has broken below 1%, indicating that deposit rates have officially entered the '1' era! According to institutional estimates, every 10BP decrease in deposit rates will lead to approximately 1.2 trillion yuan of funds flowing out of the banking system, of which about 30%-40% (360-480 billion yuan) may flow into the A-share market.

I believe not many people will choose A-shares, more people will choose Hong Kong stocks or dollar deposits! 😂 Positive news #RWA