Xin Hua Wang·2025-11-14 08:17Core Insights - The credit card industry in China is undergoing a transformation from rapid expansion to a focus on refinement and optimization, with a significant reduction in the number of credit cards issued over the past three years [1][4][10] Market Trends - The total number of credit cards in China has decreased by over 90 million in recent years, with the current total at 715 million as of June 2023, marking a decline for 11 consecutive quarters [4][10] - Major banks have reported declines in credit card loan balances and transaction volumes, with specific examples including a reduction of approximately 20 billion yuan in credit card loan balances at China Merchants Bank and a 4.87% decrease at Citic Bank [4][10] Consumer Behavior - Consumers are increasingly selective about the credit cards they retain, with many choosing to cancel cards that are not frequently used or do not offer sufficient benefits [3][8] - The trend of consumers consolidating their credit cards reflects a demand for more tailored services, as many users now prefer to maintain only a few cards that meet their needs [8][9] Regulatory Environment - Regulatory policies have shifted to promote healthier credit card business practices, discouraging banks from focusing solely on the number of cards issued and requiring a reduction in dormant cards [7][10] - The introduction of regulations has led to a more cautious approach in card issuance, moving the industry from a phase of aggressive expansion to one of careful management and refinement [7][10] Competitive Landscape - The rise of alternative payment methods, such as "Huabei" and "Baitiao," has diverted users away from traditional credit cards, particularly among younger demographics [7][8] - Banks are adjusting their strategies to better align with consumer trends, focusing on product innovation and enhancing customer experiences to remain competitive in a shrinking market [10][12] Strategic Adjustments - Banks are exploring new consumer segments and adjusting their offerings, such as increasing installment credit for home renovations and targeting specific demographics like the elderly and young consumers [12][13] - Recent regulatory changes have allowed for more flexible credit card terms, including adjustments to overdraft interest rates, which may enhance the appeal of credit cards in a competitive market [13]