CICC: Mainland Chinese Residents' "Deposit Migration" and "Deleveraging" Coexist in 1H26, Risk Appetite Improves Significantly
I'm LongbridgeAI, I can summarize articles.CICC reports that Mainland Chinese residents' deposit migration and deleveraging coexisted in H1 2026, with net deposit increases dropping significantly. Risk appetite improved notably compared to the previous year. Wealth management revenues for banks, brokers, and platforms grew substantially, driven by high-risk investment preferences. Private banking client numbers surged 15.2% YoY, outpacing retail growth. AI adoption is expanding among wealth institutions. CICC maintains 'Outperform' ratings for major banks like CM Bank, CCB, and Bank of China.
CICC published a report stating that Mainland Chinese residents' "deposit migration" and "deleveraging" coexisted in 1H26. Net increase in residents' deposits amounted to RMB7.6 trillion, representing a YoY decrease of RMB3.2 trillion in incremental growth, marking the largest reduction in nearly a decade. The broker believes residents' risk appetite improved significantly compared with the same period last year, but remained broadly stable compared with 2H25 rather than continuing a steep upward trend. Among wealth management institutions, brokers and third-party platforms provided more services catering to clients' high-risk investment preferences, achieving higher elasticity in AUM and revenue growth.
The broker noted that in 1H26, wealth management revenue of sample banks, brokers and platform institutions grew 7.6%, 48.7% and 42.4% YoY respectively. Excluding one-off gains related to legacy wealth management products, the broker estimated banks' YoY growth at 16.6%, down slightly by 2.6 ppts from 2H25, while maintaining double-digit growth. As of the end of 1H26, retail AUM of sample banks rose 10.2% YoY, while wealth management AUM increased 17% YoY. Wealth management products accounted for 57% of incremental retail AUM, up 33 ppts YoY. The broker estimated the average comprehensive fee rate for wealth management client assets at three sample banks in 1H26 at 0.24%, up about 3 bps YoY and compared with full-year 2025.
Regarding customer segments, the number of private banking clients rose 15.2% YoY, faster than the 2.7% growth in retail customers at sample banks. Growth in broker client numbers and custodial asset scale also outpaced banks. The broker also stated that AI has become a widely promoted capability development direction among wealth management institutions.
Stocks | Investment Rating | TP (HKD)
CM BANK (03968.HK) +0.500 (+0.990%) Short selling $45.21M; Ratio 29.342% | Outperform Industry | HKD60.49
CCB (00939.HK) +0.155 (+1.626%) Short selling $154.77M; Ratio 18.517% | Outperform Industry | HKD9.69
BANK OF CHINA (03988.HK) +0.090 (+1.505%) Short selling $109.48M; Ratio 24.237% | Outperform Industry | HKD6.42
(ha/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-09-28 12:25.)