As the regulations regarding online banking business became tighter in late 2020, interest-bearing time deposit products have become the new target being supervised by the CBIRC (China’s Banking and Insurance Regulatory Commission). They are usually handled by small regional banks with high-risk, relying on advertisement featuring high-interest returns to pump liquidity and release pressure from liabilities. Well-known platforms such as Alibaba, JD Digits and Didi Finance have completely removed all time deposits in response to the regulations.
