China Construction Bank Sees Stable Corporate Loan Demand, but Retail Credit Demand Remains Soft

We believe China Construction Bank's strong deposit franchise and good-quality customer base are key differentiating factors from Chinese bank peers, as it leverages its extensive offline network and entrenched ties with household and corporate customers. However, 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 bank's net interest margin should outperform when business activities recover.