MNI China Press Digest May 29: Deposit Rates, U.S., Car Sales

Highlights from Chinese press reports on Thursday:

• Several small and medium-sized banks have lowered their deposit rates by more than the 10-basis-point decline in Loan Prime Rates last week, following similar moves by larger institutions, China Securities Journal reported, citing analysts who noted the cuts were likely to help protect net interest margin. By end-Q1, NIM levels of large commercial, joint-stock, city commercial and rural commercial banks were 1.33%, 1.56%, 1.37%, and 1.58%, decreasing by 11, 5, 1, and 15 bp from Q4 2024, the newspaper said.
• China will promote high-quality development through high-level opening up, Chinese Vice Premier He Lifeng told Morgan Stanley Co-President Dan Simkowitz at a meeting in Beijing. Authorities welcome U.S. funded financial institutions and long-term capital to deepen mutually beneficial cooperation with China and participate in the construction of the nation’s capital market, He said. (Source: Xinhua News Agency)
• China's passenger car retail sales reached 1.3 million units between May 1-25, up 16% y/y and 9% m/m, data from the China Passenger Car Association showed. New energy passenger cars sold 726,000 units, increasing 31% y/y and 11% m/m, with a market penetration rate of 53.5%. The May holiday's increase in low cost self-driving tours supported demand for private and rental cars, the association said. However, the trade war with the U.S. had impacted car sales in export provinces Jiangsu and Zhejiang, the association noted.