“Changes in the incremental structure are becoming a new variable affecting the operation of net interest spreads.” At the performance briefing on October 30, the relevant person in charge of the balance and liability department of the Industrial and Commercial Bank said this in response to market concerns about the “bond investment growth rate continues to be higher than credit.” As to whether the future growth rate of bond investment can continue to be higher than credit, ICBC has given three dimensions of observation: first, looking at macroeconomic policy combinations, taking into account budget arrangements and the pace of government bond issuance; second, looking at effective credit requirements. If physical investment and financing pick up and high-quality projects increase, credit investment will rise accordingly; and third, look at market interest rate trends, dynamically adjust allocation strategies, and not simply pursue scale expansion. ICBC judged that if the policy interest rate remains stable, the net interest spread is expected to stabilize and bottom out during the year, and there may be slight narrowing pressure next year.

“Changes in the incremental structure are becoming a new variable affecting the operation of net interest spreads.” At the performance briefing on October 30, the relevant person in charge of the balance and liability department of the Industrial and Commercial Bank said this in response to market concerns about the “bond investment growth rate continues to be higher than credit.” As to whether the future growth rate of bond investment can continue to be higher than credit, ICBC has given three dimensions of observation: first, looking at macroeconomic policy combinations, taking into account budget arrangements and the pace of government bond issuance; second, looking at effective credit requirements. If physical investment and financing pick up and high-quality projects increase, credit investment will rise accordingly; and third, look at market interest rate trends, dynamically adjust allocation strategies, and not simply pursue scale expansion. ICBC judged that if the policy interest rate remains stable, the net interest spread is expected to stabilize and bottom out during the year, and there may be slight narrowing pressure next year.