MNI China Press Digest Oct 23:Fixed Deposits, Industrial, Gold

Highlights from Chinese press reports on Thursday:

• Fixed-deposit rates in China continued a mild downward trajectory in September, according to a report by the Rong360 Digital Technology Research Institute. Compared with the previous month, deposit rates for three-month to five-year maturities fell between 0.1bp to 0.4bp. Meanwhile, average interest rates for certificates of deposit (CDs) showed the one-year rate declined by 1.39bp, the two-year rate remained unchanged and the three-year rate climbed by 5.93bp. The three-year CD rise was largely driven by small and medium-sized banks, said Ai Yawen, an analyst at Rong360. “To meet year-end funding targets, these banks may be temporarily adjusting customer acquisition strategies, launching new CD products and offering higher rates to attract more depositors,” said Ai.
• Recent data on industrial enterprise prices and profits have shown improvement, indicating that efforts to curb over competition are beginning to yield results, according to Yicai News. Guo Lei, chief economist at GF Securities, noted that the quarterly rebound in industrial capacity utilisation demonstrates the positive impact of anti-over competition measures. While utilisation in ferrous metal smelting declined, it remained above 80%, higher than last year’s level. By contrast, coal and non-metallic minerals posted both low and declining utilisation rates, underscoring the need for continued capacity optimisation. Deng Zhou, a researcher at the Chinese Academy of Social Sciences, emphasised that addressing disorderly price competition needed the market to play a decisive role in resource allocation while improving regulatory oversight.
• Lao Pu Gold and Chow Tai Fook, two leading domestic jewelry brands, plan to raise product prices at the end of October, marking their third increase this year, even as domestic and international gold assets fall across the board, Yicai reported. Ironically, consumer enthusiasm to “buy before prices rise” has triggered another wave of gold buying at physical stores. If gold enters a period of volatile adjustment and with the retail promotion season approaching, brands may opt to fine-tune retail prices through “labour cost discounts” or “cash-back per gram” promotions, analysts said. While e-commerce platforms are rolling out “Double 11” shopping festival promotional discounts, physical stores have not followed suit, Yicai noted.