CCB's NIM Faces Lingering Pressures From Existing Mortgage Loan Rate Repricing

We believe CCB's strong deposit franchise is a key differentiating factor amid the accelerating deposit migration, thanks to an extensive network and entrenched ties with household and corporate customers. Deposit competition continued to intensify over the past few years, as a result of ongoing interest-rate liberalization. Savers' strong appetite for higher-yield shadow banking and other financial products has led to accelerating deposit outflow. CCB’s deposit strength, evidenced by high proportions of retail deposits and demand deposits, resulted in a milder impact on average deposit costs than most peers.