China's credit card market has reported remarkable growth over the past few years although it has grown from a small base. The country aggregately issued more than 142 Million credit cards at the end of 2008, an increase of around 58% over the previous year. This strong growth has mainly been driven by low credit card penetration which is estimated at around 11%.
Realizing the havoc economic downturn has made on the financial sector, 2009 is expected to be a tough year for the Chinese credit card market to increase its number of card users. The year-on-year growth of credit card issuance will decelerate as a result of rising concerns over high credit default rates, says our recently updated report “China Credit Card Market Outlook to 2013”. However, it will not stall future growth of the Chinese credit card market.
The number of credit cards issued is expected to expand at a double-digit rate over the next few years, once the economic environment becomes more business friendly that will improve consumer confidence. Our report anticipates that the Chinese credit card market will witness a CAGR of around 26% during 2010-2013 on the back of several factors like rapidly growing middle class, government support and low penetration of credit cards.
Moreover, the current market structure is dominated by the state-owned banks such as Industrial and Commercial Bank of China, China Merchants Bank and China Construction Bank but the present structure will see involvement of foreign banks in credit card issuance. Thus, it is likely that foreign banks will play a more important role in intensifying the competition over the forecast period.
“China Credit Card Market Outlook to 2013” provides an extensive research and rational analysis along with reliable statistics of the credit card market in China. The report has thoroughly examined current market trends, industrial developments and competitive landscape to enable clients understand the market structure and its progress in coming years. Forecast in this research has been done considering the possible impact of recession on the industry. It will help clients to have proper insight in the current and future outlook of credit cards market in China.
