BOCHK joins race to woo depositors

The Bank of China Hong Kong (2388) has raised its 12-month time deposit rate to 2.7 percent, joining other major banks to attract depositors.

The bank increased the rate for 12 months by 30 basis points to 2.7 percent, close to the highest rates ranging from 2.8 to 3 percent offered by Standard Chartered Hong Kong.

BOCHK also raised its three- and six-month rates to 1.8 percent and 2.5 percent respectively, with a requirement of a minimum deposit amount of HK$10,000.

With the increases, the rates of the bank surpass the Hongkong and Shanghai Banking Corporation and Hang Seng Bank (0011), whose 12-month time deposit rates are 2.2 percent and 1.5 percent respectively.

However, Citibank Hong Kong recently continued to cut its 12-month time deposit rate by six basis points to 2.93 percent, the six-month rate by five basis points to 2.75 percent and the three-month by three basis points to 2.69 percent.

DBS Hong Kong meanwhile expects the deposit rates in Hong Kong will rise further, with the US Federal Reserve poised to raise rates next week.

In other news, BOCHK said that about 70 percent of its high-end clients choose to conduct the wealth management transactions through its online platform as of June.