2026: Hang Seng Bank Offers 4% on One-Month USD Deposit; State Banks at 2.8%

Competition for US dollar deposits among Chinese banks is heating up, with multiple foreign banks launching promotional time deposit products. Hang Seng Bank (China) launched a limited-time promotion in July 2026, offering new customers up to 4% annualized on one-month US dollar time deposits, and 3.65% for both three-month and six-month tenors, with a minimum deposit of US$20,000. East Asia Bank is running a promotion from July 15 to 31, offering new customers with deposits of US$10,000 to less than US$50,000 rates of 3.4% for three months, 3.35% for six months, and 3.2% for one year; for deposits of US$50,000 or more, rates are 3.4% for three months, 3.55% for six months, and 3.25% for one year. Some city commercial banks have also joined the competition, with Nanjing Bank offering a one-year rate of 3.42% on large deposits of US$200,000. Large state-owned banks generally offer around 2.8% for one-year US dollar deposits.

Banks are raising US dollar deposit rates due to higher US dollar funding costs and increased demand for cross-border business and foreign currency asset allocation. US dollar deposit rates vary widely; foreign banks have more mature international business systems and higher demand for US dollar funds. As Chinese companies expand overseas and residents' demand for overseas consumption, study, and investment increases, banks' need for US dollar funds has risen. US dollar deposits are not only a savings product for residents but also an important foundation for banks to develop cross-border financial services.

The renminbi has appreciated over 3% against the US dollar this year, and over 5% in the past year.