China Merchants Bank Vice President Peng Jiawen Discusses Deposit Relocation: Deposit Loss Is Also a Market Shakeout Opportunity

March 30 Financial Frontline News: China Merchants Bank held its 2025 annual results briefing today. Deputy General Manager Peng Jiawen discussed the issue of “deposit moving,” saying that, based on the volume of its time deposits maturing, compared with 2025 versus the prior year and versus previous years, it is indeed slightly higher, but it is not abnormal data and remains within a normal range.

“Everyone is actually more concerned about this question: in the current low-interest-rate environment, when deposit rates can’t meet customers’ needs for returns, where do deposits flow to? They may flow into the capital markets—investments in stocks—or be converted into our wealth management products, or public fund products, and so on.” Peng Jiawen has the following two understandings of deposit outflows:

First, from the customer perspective: deposits may flow out, but customers won’t. If the funds flow into our wealth management products and public fund products, then we hope that through our services, we can keep these funds within our organization. It may not necessarily be on-balance-sheet funds, but it is still customers’ money. So deposits may flow out, but customers won’t. This is the AUM concept that China Merchants Bank often emphasizes. Last year, China Merchants Bank’s total AUM surpassed 17 trillion yuan, with a growth rate of over 14%. In practice, this is a concept of keeping funds in place.

Second, from the funds perspective: deposits may flow out, but the funds won’t. If a bank’s deposits flow into the capital markets, stocks in the capital markets would be settled as deposits at the exchanges or deposits in third-party custody accounts; at the bank, they are accounted for as interbank demand deposits. However, if, through services to customers, the funds can flow back into CMB through interbank channels, then this is “deposit outflow,” but the funds do not actually disappear.

In response, Peng Jiawen proposed the following work: First is to do everything possible to prevent deposits from flowing out—this is the fundamental work that must be done. Through our services and connections with various products, we prevent deposit outflows.

Second, if deposits are going to flow out, we must do a good job of product matching. This is both a test of our wealth management capabilities, including the product capabilities of our wealth management subsidiaries and our professional capabilities—so that funds can flow from deposits into products, but still remain within our organization.

Third, further improve interbank services, so that funds can flow back into our accounts from the interbank market and capital markets.

Fourth, the timing of deposit outflows is also an opportunity for a market reshuffle. By using our products and services and leveraging our core competitive advantages, we can re-capture more market share opportunities, and thereby attract more customers and more funds to flow into CMB—this is the direction we are working toward.

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责任编辑：曹睿潼