Citic Securities: it is still possible for MLF to cut interest rates later.

Xinhua News Agency, June 13, China CITIC Securities Research report pointed out that recently, six major banks have updated the listing interest rates of RMB deposits, with interest rates for demand and time deposits both lowered, and medium-and long-term time deposits falling even more. Following the six major banks, on June 12, some national joint-stock banks announced that they would cut the interest rate on RMB deposits. We believe that the adjustment of the listing rate is expected to save the cost of 2-3bps deposits for banks. Taking into account the extent of deposit cost reduction and the timing of the effect, combined with the current macroeconomic environment, we believe that the follow-up MLF interest rate reduction is still quite possible.