Chinese deposits shift from brokers to banks and wealth management products

Total deposits grew faster by CNY0.9t MoM in Sep 2015.

According to Maybank Kim Eng, deposits of nonbank financial institutions (FIs) plunged for the second straight month, declining CNY1.2t in Sep 2015 (-CNY796b MoM in Aug 2015). 

Both RMB individual and corporate deposits rebounded further by CNY766b MoM and CNY228b MoM in Sep 2015 (+CNY187b MoM & +CNY667b MoM in Aug 2015).

"We believe individuals & companies continued to repatriate funding from brokers’ deposits to banks’ deposits and wealth management products. As such, total deposits (excl. non-bank FIs deposits) grew faster by CNY0.9t MoM in Sep 2015 (+CNY0.8t MoM in Aug 2015; +CNY2.1t in 3Q15). This should prevent severe price competition on deposits in the near term. We expect limited NIM pressure for China banks in 2H15 vs. 2Q15."