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Short-term banking lures money during holidays

By Hao Yan (chinadaily.com.cn)
Updated: 2011-01-28 16:22

Many banks launched short-term banking products aimed at idle capital during the coming Spring Festival holiday, China Securities Journal reported on Jan 25.

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A State-owned commercial banks' Shenzhen branch launched a nine-day term (Feb 1 to 9) product, with an anticipated 3.3 percent annualized rate of return, but it requires a minimum of 1 million yuan ($151,860).

One bank manager said the short-term product is designed to bring in large capital set to be idle at the holiday, such as money withdrew from the stock market. And so far, he said it has attracted many clients.

"Our 16-day product can make about 700 yuan profit for an investment of 500,000 yuan," another State-owned commercial bank's manager said.

The Year of the Rabbit begins Feb 3, and the Spring Festival holiday is from Feb 2 to Feb 8.