Small and medium-sized banks intensively cut deposit interest rates, and Bank ETF Huaxia (515020) may benefit from improved industry fundamentals

As of 14:14, the China Securities Bank Index (399986) increased by 0.59%, with constituent stocks Yunnan Rural Commercial Bank up 3.62%, Zijin Bank up 2.25%, and Ruifeng Bank up 2.12%. The Bank ETF Huaxia (515020) rose by 0.54%, with the latest price at 1.68 yuan.

Since April, multiple city commercial banks and rural commercial banks such as Jilin Bank, Xiamen Bank, and Fujian Haixia Bank have collectively lowered their deposit listing interest rates, with reductions ranging from 5 to 30 basis points, involving several mainstream products like fixed deposits and notice deposits. The pace of interest rate cuts has noticeably accelerated.

An industry insider analyzed that after the “Opening Red” (initial surge), the banking industry needs to refocus on liability cost management. Choosing to lower deposit interest rates at this time can help reduce deposit costs and optimize the liability maturity structure, which is beneficial for improving the banks’ fundamentals.

Guotai Haitong Securities believes that the performance of listed banks in 2026 is expected to remain stable, with both revenue and net profit attributable to the parent expected to achieve year-on-year positive growth. Asset quality remains stable, with non-performing loans gradually decreasing. Additionally, the channels for external capital replenishment for banks are expected to reopen, opening up medium- and long-term development space.

The Bank ETF Huaxia (515020), which tracks the China Securities Bank Index (399986), has the lowest comprehensive fee rate among ETFs. Its connection fund Class A is 008298; Class C is 008299; Class D is 024642.

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