According to the Wisdom Financial APP, mainland banking stocks opened higher in the morning. As of the time of publication, Postal Savings Bank of China (01658) rose by 3% to HKD 4.81; Bank of Communications (03328) rose by 2.5% to HKD 6.16; CM Bank (03968) rose by 2.43% to HKD 40; Bank of China (03988) rose by 2.39% to HKD 3.86.

On the news front, there have been rumors in the market recently that Chinese banks will once again lower deposit interest rates, with the announcement expected as early as this week. Several bank officials have not yet responded positively to inquiries from journalists, but some industry insiders have indicated the possibility of lower deposit rates in the near future. An internal source from a joint-stock bank mentioned that the bank had planned to begin further lowering deposit rates after the National Day holiday, but as of now, there have been no changes. It is anticipated that there is a high probability of regulatory authorities guiding banks to adjust deposit rates in the near future. This is also to offset the impact of the upcoming decrease in existing housing loan rates on banks' interest margins.

It is worth mentioning that recently, the six major banks and 12 joint-stock banks collectively issued announcements regarding the mass adjustment of existing housing loan rate items. Many local banks are also gradually following suit, with most planning to mass adjust the existing housing loan rate increments higher than the '30BP' before the end of October to '30BP'. With the imminent implementation of the reduction in existing housing loan rates, the banking industry's interest margins may face further pressure. Against this backdrop, the industry expects that there is still room for further reduction in deposit rates.