3 6 Ke·2025-05-23 00:02Core Insights - The Chinese credit card industry is experiencing a significant decline, with the total number of issued cards reverting to levels seen at the end of 2019, marking a continuous decrease over nine consecutive quarters [1][12]. Group 1: Decline in Credit Card Issuance - As of the end of 2024, the number of active credit cards and combined credit and debit cards is projected to be 727 million, a decrease of 5.14% from the end of 2023, equating to a loss of 40 million cards [1]. - The total credit card issuance has dropped by 80 million cards compared to the fourth quarter of 2022, reflecting a persistent downward trend [1]. Group 2: Bank Responses to Declining Credit Card Business - Several banks, including the Bank of Communications, have begun shutting down credit card sub-centers, with 23 closures reported in 2024 alone [2]. - Many banks are integrating credit card operations into their retail banking divisions, moving away from dedicated credit card departments due to the declining business [4]. - A significant number of credit card products have been discontinued, with the Agricultural Bank of China ceasing the issuance of 80 credit card types in 2024 [5]. Group 3: Decrease in Credit Card Spending - Credit card transaction volumes have also seen a decline, with the Bank of Communications reporting a 12.81% drop in total spending from 2023 to 2024, amounting to a reduction of 360 billion yuan [7]. - Overall, major banks have reported decreases in credit card spending, with the Industrial and Commercial Bank of China, for example, seeing a 4.91% decline in transaction amounts [8]. Group 4: Factors Contributing to the Decline - Regulatory changes have led to a significant cleanup of dormant credit cards, with over 120 million cards removed from circulation by mid-2024 [12]. - The rise of third-party payment platforms like Alipay and WeChat Pay has diminished the market share of credit card transactions, which now account for only 35% of offline transactions [12]. - Economic factors, including stagnant income growth and rising unemployment among young people, have led to a more cautious approach to credit card usage [15]. Group 5: Future Outlook - The decline in credit card usage is seen not as a sign of industry failure but as a necessary transition towards more refined banking operations, emphasizing the need for banks to adapt to changing market conditions and consumer preferences [18].