The industry’s demand deposit self-regulation "2.0" is here, benefiting banks with stabilized net interest margins! Focus on Huaxia Bank ETF (515020).

As of 10:14, the China Securities Bank Index (399986) increased by 0.06%, with constituent stocks Chongqing Bank up 1.36%, Huaxia Bank up 1.14%, and CITIC Bank up 0.67%. The Huaxia Bank Bank ETF (515020) rose by 0.12%, with the latest price at 1.68 yuan.

On March 12, the market interest rate pricing self-discipline mechanism held a meeting with some member banks, requiring strengthened self-regulation. The proportion of interbank demand deposits at the end of the quarter exceeding the policy rate of 7-day reverse repurchase OMO (1.4%) should not exceed 10% to 20%, known as the “2.0” self-discipline for interbank demand deposits.

Open Source Securities analysts estimate that this assessment rule involves about 16 trillion yuan of interbank demand deposits across the industry. If implemented, it is expected to promote a net interest margin increase of approximately 0.7 basis points for listed banks. Industry insiders believe that regulators may strengthen management of high-yield interbank demand deposits. This could impact banks’ liability costs; reducing the proportion of high-yield interbank demand deposits can lower commercial banks’ liability costs, help stabilize net interest margins, and improve banks’ fundamentals.

Orient Securities believes that by 2026, the banking sector is expected to return to fundamental narratives, and they are optimistic about the absolute returns of the banking sector in 2026.

The Huaxia Bank ETF (515020) is the ETF tracking the China Securities Bank Index (399986) with the lowest comprehensive fee rate, with connection fund Class A 008298; Class C 008299; Class D 024642.

Daily Economic News