Jane Chen / Shanghai Daily news

The Bank of Shanghai announced yesterday that it is raising its two-year bank rate for US dollar deposits by 0.225 percentage point to 1.50 percent, the highest among domestic banks.
So far, no other bank has announced plans to follow suit.
In addition to an expectation of more rate hikes to be introduced by the US Federal Reserve, the Bank of Shanghai explains their rate increase as a strategy to boost its foreign exchange business by taking advantage of China's latest move to liberate the interest rates for foreign currencies.
The People's Bank of China announced last November 18 it would allow commercial banks to set the two-year banking rates for the US dollars, euros, Japanese yen and HK dollars.  On the same day, it announced a 0.3125 percentage point increase to 0.875 percent for the upper limit of the interest rate for one-year US dollar deposits.
Following the central bank's opening-up of two-year rates, banks have started to offer varying interest rates for the US dollar. 
The rate is 0.9375 percent at the Bank of China, 1.125 percent at China Shenzhen Development Bank and 1.225 percent at China Minsheng Bank, and follows the government guidance of 0.9375 percent at the four state owned banks and other stock holding banks such as the China Merchant Bank.
With overseas banks, the rate is 1 percent at The Hongkong & Shanghai Banking Corp and Standard Chartered Bank.