China Construction Bank: Third-Quarter Stimulus Provides Support to Large Banks' Asset Quality

We believe China Construction Bank's strong deposit franchise and good-quality customer base are key differentiating factors among Chinese bank peers, leveraging its extensive offline network and entrenched ties with household and corporate customers. Though its deposit strength is overshadowed by ongoing industry headwinds including rising deposit migration to time deposits and longer-term deposits as consumer confidence remains weak. We expect the banks' net interest margin should outperform when the business activities recover.