Chinese Consumer Finance Market will Retain its High CAGR, According to BRICdata

31 Jul 2012 • by Natalie Aster

The Chinese consumer finance market recorded a compound annual growth rate (CAGR) of 28.33% during the review period (2007–2011). It is projected to retain a high CAGR of 24.30% over the forecast period (2012–2016). The strong growth will be driven by the country’s improving macroeconomic fundamentals and rising domestic demand for consumer finance products.

Housing loans is the largest category in the Chinese consumer finance market. It recorded a CAGR of 24.65% during the review period. The housing loans category is projected to record a CAGR of 20.86% over the forecast period. The Chinese population has traditionally been skeptical of using credit to finance anything other than housing. However, as the country’s disposable income levels increase, consumers are becoming more willing to access personal loans. The changing lifestyles in China have encouraged the growth of credit cards. The number of credit cards issued in China increased at a CAGR of 27.47% during 2008–2011. Banks are offering lucrative schemes to encourage people to convert their transactions into equal monthly installments (EMIs), and this is also driving the growth of credit card loans in China.

The new report "Emerging Opportunities in the Chinese Consumer Finance Market: Market Size, Strategies, Products and Competitive Landscape" by BRICdata states that the Chinese government introduced various measures to control the sharp increase in property prices during the review period. These measures prohibited mortgages for third-home purchasers and increased the downpayment for second-home purchases from 50% to 60%. These measures will have an adverse impact on the Chinese housing loan category over the forecast period.

Report Details:

Emerging Opportunities in the Chinese Consumer Finance Market: Market Size, Strategies, Products and Competitive Landscape
Published: June, 2012
Pages: 58
Price: US$ 1.950,00

Key highlights of this title

• The Chinese consumer finance market recorded a compound annual growth rate (CAGR) of 28.33% during the review period (2007–2011). It is projected to retain a high CAGR of 24.30% over the forecast period (2012–2016). 
• Housing loans is the largest category in the Chinese consumer finance market. It recorded a CAGR of 24.65% during the review period. 
• Credit card loans were the fastest-growing category in the Chinese consumer finance market due to its low initial starting base.
• The penetration of personal loans is very low in China, as only 5% of the total consumer finance market value is used for personal loans. 
• The auto loans category recorded a strong CAGR of 37.88% during the review period. 
• The education loan category is still very small in the Chinese consumer finance market, as most families use their personal saving to pay for the education fees and expenses of their children. As a result, the Chinese education loan category is relatively undeveloped.

More information can be found in the report “Emerging Opportunities in the Chinese Consumer Finance Market: Market Size, Strategies, Products and Competitive Landscape” by BRICdata.

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