TREE NEWS reports: Multiple Chinese banks have again raised their US dollar fixed deposit rates, with some products exceeding 4%, as the Federal Reserve’s rate hikes combine with the central bank’s Nov. 15 increase in the foreign exchange deposit reserve ratio to 6%. Foreign banks have raised rates notably, while major state-owned banks kept listed rates near 2.8%, with inverted yield curves appearing across tenors. The average performance benchmark for October USD wealth management products reached 4.1%.
Chinese Banks Raise USD Deposit Rates; Some Products Top 4%
AI take
The divergence between foreign banks topping 4% and state-owned lenders holding near 2.8% signals a competitive scramble for dollar funding, amplified by the higher FX reserve requirement. Inverted curves across tenors suggest banks are paying up for shorter-dated dollars, a stress signal worth monitoring. The open question is whether this deposit-rate competition spills into broader dollar-liquidity conditions or remains a product-level phenomenon.
Generated by AI for reference only.
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