【Hong Kong Dollar Fixed Deposit】Hong Kong dollar 1-year fixed deposit, up to 2.7% interest, guaranteed ¥27k

▲ The more the Bank of China loses money, the more “crazy” it raises interest rates

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The interbank rates have risen across the board for two consecutive days. In the first week of May, a total of 11 banks raised Hong Kong dollar fixed deposit rates (still fewer than 12 last week). As of Friday (May 8), six banks have increased fixed deposit rates (including China CITIC Bank International, CCB Asia, CCB Bank, Public Bank, Elephant Bank, and HSBC). Conversely, this week, three banks lowered rates with no increases (more than the two small and medium banks that cut rates last week).

“The Month of Poverty” is not poor; with the US-Iran ceasefire, the market expects the economy to recover quickly. Hong Kong banks still fiercely compete for funds before the half-year closing, leading industry insiders to anticipate the rate hike trend is not over. In fact, the number of banks continuously raising rates for six weeks overwhelmingly dominates.

In summary, a total of 15 Hong Kong banks adjusted fixed deposit rates this week, with 11 increases (including three consecutive weekly increases at CCB, two at CCB Asia, and one each at CCB Bank, HSBC, OCBC Wing Hang, Standard Chartered, Public Finance, United Overseas Bank, Bank of East Asia, and Bank of China). Conversely, three banks lowered rates (Dah Sing, Lihui, Ping An Digital Bank). One bank both increased and decreased rates (Elephant Bank lowered then raised rates again).

1-year fixed deposit “double crown” Elephant Bank challenges Ping An

This week, five high-interest rates topped the list (2 months, 4 months, 9 months, 1 year, and 18 months), with three reaching new highs (2 months, 9 months, and 24 months). First, the 2-month rate broke records, with CCB Asia increasing to 2.45%, surpassing Nanyang Commercial Bank’s 2.3%.

As for the 1-year term, Elephant Bank (formerly Tianxing) slightly increased to 2.7%; meanwhile, Ping An Digital Bank slightly decreased to 2.7%, resulting in a “double champion.” If considering Ping An Digital Bank’s deposit limit of HKD 1 million, earning 2.7% over the full term easily beats lottery draws, as winning a lottery or bonus payout can easily result in a zero return.

• #Review of the big and small bank rate king battles:
• 7-day highest rate: Fubon 21% (new customer exclusive)
• 14-day: Fubon 25% (new customer)
• 1 month: Mox 12% (new customer)
• 2 months: CCB Asia 2.45% (breaking record, replacing Nanyang Commercial Bank at 2.3%)
• 3 months: CCB Asia 6.88% (for the top 20% of deposits), with an alternative 5.88%
• 4 months: Fubon 2.45% (Li Hui slightly decreased 0.05%)
• 5 months: Nanyang Commercial Bank 2.45%
• Half-year: Ping An Digital Bank (formerly PAObank) 2.6%
• 7 months: Public Finance 2.125%
• 9 months: Elephant Bank (formerly Tianxing) 2.6% (breaking record)
• 1 year: Elephant Bank + Ping An Digital Bank 2.7%
• 18 months: HSBC + Fubon 2.75%
• 2 years: HSBC 2.8% (breaking record)
• 36 months: Mox 2.3%
• 48 months: Mox 2.3%

IPO margin financing draws over HKD 8B, HK dollar strengthens

The IPO lock-up funds of HKD 8B will only be returned early next week. Interbank rates have risen for two consecutive days, with overnight rates up twice, now at 2.73%; 1-month interbank rates also rose twice, reaching 2.61%. The total bank system balance remains at HKD 53.98 billion, compared to HKD 8B before “receiving money,” a difference of HKD 8B.

The HK dollar has broken through 7.83, quoting at 7.8287 to 7.8345. Rumors suggest the US and Iran will cease fire before the “Xitex” summit, but Gulf geopolitics remain volatile. The US dollar has risen back above 98, now at 98.243.

The RMB hit a 3-year high on Thursday, closing at 6.8015 in Asia. The HK dollar also strengthened, reaching a high of 7.8303 yesterday, the strongest since April 22 when it recorded 7.8299; on Friday, it rose again to 7.8287, the strongest since April 21’s 7.8282. Citibank predicts that the US-China leaders’ summit on Thursday (14th) may boost the RMB and stock markets.

Overall, the rise in interbank rates combined with a strengthening HK dollar reflects capital inflows. Since the Gulf conflict, hot money has continued to flow into Hong Kong. According to HKMA data, Hong Kong banks’ total deposits increased by 1% year-on-year in the first quarter, with HK dollar deposits rising by 1.9%.

#IPO quick report:

China Industrial Robotics Company Wingfei Technology: Listing from Friday to next Wednesday (May 13), offering 24.6 million H-shares, with 5% for Hong Kong public offering and the rest for international placement. The IPO price is HKD 30.5, raising about HKD 750 million; a lot (100 shares) costs HKD 3,080.

Jitai Technology: This specialized tech company is the “first AI drug delivery IPO,” applying under Listing Rules Chapter 18C (5% public offering, can be over-allotted up to 20%). The offering has closed, with brokers borrowing HKD 8B margin, oversubscribed 3,578 times.

Inpharm: This biotech stock also closes its IPO on Friday, with brokers borrowing HKD 8B, oversubscribed 675 times.

Lad Robotics: Trading on the grey market on Friday via Bright Securities, Wise Talents, and Futu; debut on the Hong Kong Stock Exchange next Monday. Rumors suggest it is oversubscribed 6,275 times (with brokers borrowing HKD 8B), second only to Tianxing Medical (01609). Oversubscribed 7,822 times, potentially becoming this year’s second-largest “oversubscription king,” surpassing “new stock king” Xizhi Technology. About 300k people applied, even with large investors placing heavy bets of 8,333 lots worth over HKD 50.5 million, risking “white elephant” outcomes.

“Month of Poverty” high-interest list announced, CCB Asia leads at 7.8%

Additionally, two small and medium banks launched new promotional rates in May:

CCB Asia 14-day 7.8%: From now until June 30, qualified customers who complete one or more eligible investment transactions totaling HKD 300k or more can enjoy 7.8% for 14 calendar days from the first eligible transaction, either in-branch or via phone, with new funds. Completing related transactions and meeting requirements can also earn up to HKD 26,500 cash reward and a new fund fixed deposit at 7.8% annual interest.

Dah Sing 1-year 2.6%: Minimum HKD 100k, valid from now until June 30. New deposit customers who also become VIP banking clients and open a “Yuet Chut Principal and Interest” fixed deposit with new funds can enjoy a 2.6% annual interest rate once; limited quota, first-come, first-served. Max HKD 500k. Features include:

• Deposit term: 12 months (also options for 18 or 24 months at 0.75%)
• Flexible withdrawal: monthly interest or partial principal and interest
• Suitable for customers seeking stable returns and improved cash flow

Major banks’ patience in May, no counterattack yet; small banks raise rates

Meanwhile, as May begins, the four major banks continue to hold steady. HSBC has not adjusted its published rates since early March, and Bank of China Hong Kong has not moved since cutting rates in early February.

Comparison of the four major banks’ published rates:

• 7 days: HSBC 7% (for qualified new funds, in-branch or via phone banking), 6% (liquid financial promotion) Standard Chartered 5% (cut 2% on Feb 10) Bank of China Hong Kong, Hang Seng 5%
• 1 month: HSBC 10% (stock reward plan), 3% (for new funds) Hang Seng 3% (launched Jan 2, HKD 1 million threshold), 2.5% (HKD 10k threshold) Bank of China 2%
• 3 months: Hang Seng 2.2% (added 0.2% on April 22) HSBC 2.2% (cut 0.2% on March 2) Standard Chartered 2.1% (cut 0.1% on March 2) Bank of China 2.1% (cut 0.3% on Feb 4)
• Half-year: Hang Seng 2% (added 0.2% on April 22) HSBC 2% (cut 0.1% on March 2) Standard Chartered 1.95% (cut 0.05% on March 2) Bank of China 1.9% (cut 0.2% on Feb 4)
• 1 year: Standard Chartered 1.95% (cut 0.05% on April 14)

HSBC’s 1-month 8% high rate matures on Friday

Meanwhile, four digital banks (formerly virtual banks) have launched this week, such as HSBC’s WeLaB Bank, which lost over HKD 60 million last year but is aggressively competing for funds. On Friday, it increased rates again, raising the 18-month rate by 0.5% to 2.75%, and the 24-month rate by 0.55% to 2.8%, hitting new highs. Its 1-month annual rate of 8% (with fund purchases and additional rewards) matured on Friday (May 8).

However, Lihui (Livi Bank) and Ping An Digital Bank lowered rates, while Elephant Bank (Ele Bank, formerly Tianxing) first lowered then increased rates.

Comparison of digital bank short- and long-term rates:

• 7 days: Fubon 21% (new customer exclusive)
• 14 days: Fubon 25% (new customer)
• 1 month: Mox 12% (new customer)
• 2 months: Elephant Bank 1.7%
• 3 months: Ping An Digital Bank 2.8% (for new funds, extended to end of May)
• 4 months: Li Hui 2.4% (down 0.05% on Friday)
• Half-year: Ping An Digital Bank 2.6%
• 8 months: HSBC 2.5% (Friday up 0.03%)
• 9 months: Elephant Bank 2.6% (Thursday up 0.1%)
• 1 year: Ping An Digital Bank (new funds) and Elephant Bank 2.7%, HSBC 2.65% (for select clients), Fubon 2.65%, Li Hui, Mox, and others at 2.5%, Zhong An 2.01%
• 18 months: HSBC 2.75% (Friday up 0.5%) + Fubon 2.75%
• 24 months: HSBC 2.8% (Friday up 0.55%)
• 36 and 48 months: Mox 2.3%

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