At the 2026 interim results conference held today, China Merchants Bank Co.,Ltd. (CM BANK) Deputy General Manager, Chief Financial Officer and Board Secretary, Peng Jiawen, outlined the three typical reasons a bank would issue jumbo deposit certificates. These include managing duration risk by matching asset and liability maturities through absorbing medium and long-term jumbo deposits, supplementing liquidity positions to serve cash flow management needs, and providing clients with medium and long-term deposit allocation products from a customer-centric perspective.

Peng noted that, given current market conditions, the overall scale of five-year jumbo deposit certificate issuance, if resumed, would be limited. The associated issuance costs are low, and the impact on the banking industry's net interest margin would be minimal.

For CM BANK specifically, the current asset-liability duration matching is in good shape, and market risk control is well balanced, resulting in no obvious demand for jumbo deposits. Additionally, the bank's overall liquidity position is ample, negating the need to issue such certificates to shore up its cash reserves.

Should the bank decide to launch jumbo deposits in the future, Peng stated it would primarily be to meet customer asset allocation needs. The bank is currently working with its client group departments to assess genuine market demand for this product. If there is robust demand from both customers and the market, the bank will proceed with issuance in line with actual conditions. For maturing three-year fixed deposits and jumbo deposit certificates, the bank will also consider corresponding successor products if there is a need for rollovers.

Peng emphasized that the overall expectation is that the issuance scale of these products will not be significant, and the impact on deposit repricing and the bank's overall interest margin management will be relatively limited.