Research Report on Chinese Bank Card Market, 2010-2011
Bank card is a modern financial instrument and the carrier of multiple financial businesses. Since Chinese first bank card was issued by Bank of China Zhuhai Branch in 1985, the functions of bank card are perfected progressively. The bank card, with its convenience and safety, gradually acquires the recognition of Chinese people. Therefore, the application scope of bank card is also enlarging. An increasing number of residents and traders begin to accept bank cards.
In recent years, China’s bank card industry develops vigorously. By the end of 2009, the total issue volume of bank cards reached about 2.06 billion in China. The penetration rate of bank cards was 32%. The issue volume of credit cards came to 186 million with the total credit line of about CNY 1.36 billion and the final repayable credit of about CNY 245.76 billion. The bank card plays an increasingly important part in the social and economic activities.
Large state-owned commercial banks and joint-stock commercial banks dominate Chinese bank card market. The market share of the four major state-owned commercial banks of China was over 40% in Chinese new card issue market in 2009.
Co-branded card issue has become the mainstream strategy considering the card issue conditions of banks. The growth in the number of card issuers intensifies the competition in Chinese bank card market. Under the circumstances, it is an important market strategy for card issuers to search for cooperative partners, fully integrate the superior resources of cooperators, promote co-branded cards with the assistance of cooperators, and attract and keep clients by offering various preferential measures.
At the end of 2006, the Regulation of the People’s Republic of China on the Administration of Foreign-funded Banks was issued and came into effect, marking the opening of the CNY business to foreign-funded banks. Solely foreign funded banks, Sino-foreign joint venture banks and branches of foreign banks in China can operate the CNY businesses specified by the Regulation. Particularly, the locally-registered foreign-funded banks are encouraged by Chinese policies. According to the Article 29 and Article 31 of the Regulation, foreign-funded banks (including solely foreign funded banks and Sino-foreign joint venture banks) registered locally can operate the “bank card business”, but branches of foreign banks are prevented from dealing with this business. In the CNY retail business, solely foreign-funded banks, Sino-foreign joint ventures and branches of foreign banks can all take public deposits. However, the branches of foreign banks can only take the deposit of over CNY 1 million, while there is no restriction of deposit amount on solely foreign-funded banks and Sino-foreign joint ventures.
Moreover, according to the Regulation, when foreign banks are transformed into the locally-registered banks, they can issue CNY credit cards in China. Presently, a number of foreign-funded banks have issued various debit cards in China. In the past few years, the Bank of East Asia has even released several types of credit cards.
The opening to foreign-funded banks enables them to operate bank card business in China. This will definitely lead to some changes in Chinese bank card business environment and intensify the competition in Chinese bank card sector. Nevertheless, the competition will prompt Chinese banks to absorb the successful experience of foreign-funded banks in bank card business, thereby promoting the development of Chinese bank card business and bringing convenience to Chinese residents in their finance activities.
Through this report, readers can acquire more information:
In recent years, China’s bank card industry develops vigorously. By the end of 2009, the total issue volume of bank cards reached about 2.06 billion in China. The penetration rate of bank cards was 32%. The issue volume of credit cards came to 186 million with the total credit line of about CNY 1.36 billion and the final repayable credit of about CNY 245.76 billion. The bank card plays an increasingly important part in the social and economic activities.
Large state-owned commercial banks and joint-stock commercial banks dominate Chinese bank card market. The market share of the four major state-owned commercial banks of China was over 40% in Chinese new card issue market in 2009.
Co-branded card issue has become the mainstream strategy considering the card issue conditions of banks. The growth in the number of card issuers intensifies the competition in Chinese bank card market. Under the circumstances, it is an important market strategy for card issuers to search for cooperative partners, fully integrate the superior resources of cooperators, promote co-branded cards with the assistance of cooperators, and attract and keep clients by offering various preferential measures.
At the end of 2006, the Regulation of the People’s Republic of China on the Administration of Foreign-funded Banks was issued and came into effect, marking the opening of the CNY business to foreign-funded banks. Solely foreign funded banks, Sino-foreign joint venture banks and branches of foreign banks in China can operate the CNY businesses specified by the Regulation. Particularly, the locally-registered foreign-funded banks are encouraged by Chinese policies. According to the Article 29 and Article 31 of the Regulation, foreign-funded banks (including solely foreign funded banks and Sino-foreign joint venture banks) registered locally can operate the “bank card business”, but branches of foreign banks are prevented from dealing with this business. In the CNY retail business, solely foreign-funded banks, Sino-foreign joint ventures and branches of foreign banks can all take public deposits. However, the branches of foreign banks can only take the deposit of over CNY 1 million, while there is no restriction of deposit amount on solely foreign-funded banks and Sino-foreign joint ventures.
Moreover, according to the Regulation, when foreign banks are transformed into the locally-registered banks, they can issue CNY credit cards in China. Presently, a number of foreign-funded banks have issued various debit cards in China. In the past few years, the Bank of East Asia has even released several types of credit cards.
The opening to foreign-funded banks enables them to operate bank card business in China. This will definitely lead to some changes in Chinese bank card business environment and intensify the competition in Chinese bank card sector. Nevertheless, the competition will prompt Chinese banks to absorb the successful experience of foreign-funded banks in bank card business, thereby promoting the development of Chinese bank card business and bringing convenience to Chinese residents in their finance activities.
Through this report, readers can acquire more information:
- Status quo of Chinese bank card market
- Economic situation for Chinese bank card industry
- Governmental policies on Chinese bank card industry
- Major Chinese bank card issuers and their operation
- Competition in Chinese bank card market
- Development trend of bank card in China
- Bank card issuers (e.g. commercial banks)
- Bank card organizations
- Enterprises connected with bank card industry chain
- Research institutes concerning bank card industry
- Investors concerning bank card industry
1. ANALYSIS ON CHINESE BANK CARD MARKET DEVELOPMENT, 2009
1.1. Overview of Chinese Bank Card Market, 2009
1.1.1 Issue of Bank Cards
1.1.2 Bank Card Issuers
1.1.3 Quarterly Issue of New Bank Cards by Issuers
1.2 Overview of Bank Cards in China, 2009
1.2.1 Card Issuers
1.2.2 Overdraft and Non-overdraft Cards
1.2.3 Co-branded and Non-co-branded Cards
1.2.4 National and Regional Cards
2. ANALYSIS ON THE COMPETITION SITUATION AMONG MAJOR BANKS ON CHINESE BANK CARD MARKET, 2009-2010
2.1 Analysis on Competition among Major Bank Cards in China, 2009
2.1.1 Standard Card Market
2.1.2 Co-branded Card Market
2.1.3 Subject Card Market
2.2 Analysis on Competition among Major Bank Card Brands in China, 2009-2010
3. ANALYSIS ON DEVELOPMENT ENVIRONMENT OF CHINESE BANK CARD MARKET, 2009-2010
3.1.1 Chinese Economy Slows Down Its Growth amid the Financial Crisis
3.1.2 Analysis on Chinese Macro Economic Development, 2009
3.1.3 Analysis on Chinese Consumption Credit Market, 2009
3.2 Analysis on Policy Environment of Chinese Bank Card Market
3.2.1 Chinese Government Stimulates Consumption to Propel the Economic Growth
3.2.2 Bank Card Ordinance is Expected to Go Public
3.2.3 Gradual Opening of Bank Card Business to Foreign Banks
3.2.4 Analysis on Chinese Personal Credit Rating System
3.2.5 Chinese Government Enhances the Regulation on the Bank Card Business
3.3. Analysis on Social Environment of Chinese Bank Card Market
3.3.1 Improvement in Personal Consumption Credit Concept
3.3.2 Transformation of Residents’ Payment Behaviors
4. ANALYSIS ON NEW BANK CARDS ISSUED BY MAJOR ISSUERS IN CHINA, 2009
4.1 Industrial and Commercial Bank of China
4.1.1 Overview
4.1.2 New Bank Cards
4.2 Agricultural Bank of China
4.2.1 Overview
4.2.2 New Bank Cards
4.3 Bank of China
4.3.1 Overview
4.3.2 New Bank Cards
4.4 China Construction Bank
4.4.1 Overview
4.4.2 New Bank Cards
4.5 Bank of Communications
4.5.1 Overview
4.5.2 New Bank Cards
4.6 China Merchants Bank
4.7 China CITIC Bank
4.8 Shanghai Pudong Development Bank
4.9 Industrial Bank
4.10 Shenzhen Development Bank
4.11 Bank of Shanghai
4.12 Bank of East Asia
5. DEVELOPMENT TREND OF CHINESE BANK CARD MARKET, 2010-2011
5.1 Chinese Bank Card Market Scale is under Expansion
5.2 Further Improvement in the Bank Card Acceptance Environment
5.3 Increasingly Rationalized Transaction Structure and Revenue Structure in Chinese Bank Card Market
5.4 Further Development of the Bank Card Business Outsourcing
5.5 More Intense Competition in Chinese High-end Bank Card Market
5.6 Regulation Departments will Enhance the Regulation on the Bank Card Business
5.7 More Obvious Personalization Trend of Bank Card
1.1. Overview of Chinese Bank Card Market, 2009
1.1.1 Issue of Bank Cards
1.1.2 Bank Card Issuers
1.1.3 Quarterly Issue of New Bank Cards by Issuers
1.2 Overview of Bank Cards in China, 2009
1.2.1 Card Issuers
1.2.2 Overdraft and Non-overdraft Cards
1.2.3 Co-branded and Non-co-branded Cards
1.2.4 National and Regional Cards
2. ANALYSIS ON THE COMPETITION SITUATION AMONG MAJOR BANKS ON CHINESE BANK CARD MARKET, 2009-2010
2.1 Analysis on Competition among Major Bank Cards in China, 2009
2.1.1 Standard Card Market
2.1.2 Co-branded Card Market
2.1.3 Subject Card Market
2.2 Analysis on Competition among Major Bank Card Brands in China, 2009-2010
3. ANALYSIS ON DEVELOPMENT ENVIRONMENT OF CHINESE BANK CARD MARKET, 2009-2010
3.1.1 Chinese Economy Slows Down Its Growth amid the Financial Crisis
3.1.2 Analysis on Chinese Macro Economic Development, 2009
3.1.3 Analysis on Chinese Consumption Credit Market, 2009
3.2 Analysis on Policy Environment of Chinese Bank Card Market
3.2.1 Chinese Government Stimulates Consumption to Propel the Economic Growth
3.2.2 Bank Card Ordinance is Expected to Go Public
3.2.3 Gradual Opening of Bank Card Business to Foreign Banks
3.2.4 Analysis on Chinese Personal Credit Rating System
3.2.5 Chinese Government Enhances the Regulation on the Bank Card Business
3.3. Analysis on Social Environment of Chinese Bank Card Market
3.3.1 Improvement in Personal Consumption Credit Concept
3.3.2 Transformation of Residents’ Payment Behaviors
4. ANALYSIS ON NEW BANK CARDS ISSUED BY MAJOR ISSUERS IN CHINA, 2009
4.1 Industrial and Commercial Bank of China
4.1.1 Overview
4.1.2 New Bank Cards
4.2 Agricultural Bank of China
4.2.1 Overview
4.2.2 New Bank Cards
4.3 Bank of China
4.3.1 Overview
4.3.2 New Bank Cards
4.4 China Construction Bank
4.4.1 Overview
4.4.2 New Bank Cards
4.5 Bank of Communications
4.5.1 Overview
4.5.2 New Bank Cards
4.6 China Merchants Bank
4.7 China CITIC Bank
4.8 Shanghai Pudong Development Bank
4.9 Industrial Bank
4.10 Shenzhen Development Bank
4.11 Bank of Shanghai
4.12 Bank of East Asia
5. DEVELOPMENT TREND OF CHINESE BANK CARD MARKET, 2010-2011
5.1 Chinese Bank Card Market Scale is under Expansion
5.2 Further Improvement in the Bank Card Acceptance Environment
5.3 Increasingly Rationalized Transaction Structure and Revenue Structure in Chinese Bank Card Market
5.4 Further Development of the Bank Card Business Outsourcing
5.5 More Intense Competition in Chinese High-end Bank Card Market
5.6 Regulation Departments will Enhance the Regulation on the Bank Card Business
5.7 More Obvious Personalization Trend of Bank Card
SELECTED CHARTS
Chart Issue Volume of Bank Cards in China, 2005-2009
Chart Issue Volume of Credit Cards in China, 2005-2009
Chart Major Government Policies in Chinese Bank Card Industry
Chart Number of Issuers on Chinese New Bank Card Issue Market, 2009
Chart Issue Volume of Bank Cards by Major Banks in China, 2009
Chart Proportions of Co-branded Card, Subject Card and Standard Card in China in Four Quarters of 2009
Chart Banks with over Ten New Bank Cards in China, 2009
Chart Issue of New Co-branded Cards by Industrial and Commercial Bank of China, 2009
Chart Issue of New Co-branded Cards by Bank of China, 2009
Chart Issue of New Co-branded Cards by Chinese Merchants Bank, 2009
Chart Issue Volume of Bank Cards in China, 2010-2014
Chart Issue Volume of Credit Cards in China, 2010-2014
Chart Issue Volume of Bank Cards in China, 2005-2009
Chart Issue Volume of Credit Cards in China, 2005-2009
Chart Major Government Policies in Chinese Bank Card Industry
Chart Number of Issuers on Chinese New Bank Card Issue Market, 2009
Chart Issue Volume of Bank Cards by Major Banks in China, 2009
Chart Proportions of Co-branded Card, Subject Card and Standard Card in China in Four Quarters of 2009
Chart Banks with over Ten New Bank Cards in China, 2009
Chart Issue of New Co-branded Cards by Industrial and Commercial Bank of China, 2009
Chart Issue of New Co-branded Cards by Bank of China, 2009
Chart Issue of New Co-branded Cards by Chinese Merchants Bank, 2009
Chart Issue Volume of Bank Cards in China, 2010-2014
Chart Issue Volume of Credit Cards in China, 2010-2014
