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<Research>JPM: CN Faster, Deeper Rate Cut Expedites Deposits Migration to Financial Mkt; PSBC, CMB Preferred for CN Banks
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The expected downward adjustment of the reserve requirement ratio (RRR) and the upcoming downward adjustment of the loan prime rate (LPR) will have a largely neutral impact on the NIMs of Chinese banks, JP Morgan released a research report as saying. However, the collapse of time deposit rates will lead to a shift of deposits to the financial market, which will cast a positive impact on banks' fees and play an important role in stabilizing their NIMs. Among Chinese banks, JP Morgan preferred PSBC (01658.HK), which is a major beneficiary of lower deposit rates due to its low loan-deposits ratio. The broker also preferred CM BANK (03968.HK), which is the largest distributor of financial products among Chinese banks and therefore stands to benefit from the deposit migration trend. AAStocks Financial News |
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