With rising market expectations of a Fed rate cut in December, financial institutions are leveraging this "window period" to aggressively promote USD-denominated products.
Since November, multiple commercial banks have launched marketing campaigns for USD deposit products, highlighting annual interest rates above 3% as a key selling point. CBHB's Taiyuan branch recently advertised USD time deposits with tenors ranging from 1 month to 1 year, offering 3.10% annual yield for 1-year deposits with a minimum threshold of $10,000.
Guangfa Bank's Macau branch promoted an 11-month USD certificate of deposit at 3.95% yield requiring $30,000 minimum deposit. Meanwhile, Evergrowing Bank's Ningbo branch adjusted its 1-year USD deposit rate downward to 3.30%, maintaining the "3%-plus" range with $10,000 minimum investment.
Foreign banks including China Merchants Bank, Luso International Banking, and Hana Bank have also intensified USD deposit promotions this month. China Merchants Bank offers up to 3.40% for 6-month deposits (minimum $10), with 1-month and 3-month tenors yielding 3.25% and 3.35% respectively.
Wealth management firms like Huihua Wealth have concurrently marketed USD理财产品, claiming "now presents a golden window to lock in attractive coupon rates before potential yield declines."
Analysts note that Fed rate cuts typically depress USD deposit rates and exchange values, creating dual risks for investors. "The combined impact of yield compression and RMB appreciation could significantly erode actual returns," warned Zhu Hualei, senior advisor at Jufeng Investment.
Xue Hongyan, researcher at Sushang Bank, cautioned that mid-to-long term USD deposits face greater downward rate pressure. "Investors needing USD exposure should lock rates pre-cut, while others should avoid speculative forex conversions chasing temporary yield advantages," he advised, noting that some high-yield short-term products carry liquidity restrictions or high entry barriers.
Market participants are advised to holistically evaluate interest rate trajectories, currency risks, and liquidity needs when considering USD deposit allocations.
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