Core Insights - The credit card industry is experiencing significant performance divergence among banks, with a notable reduction in credit card stock and transaction volumes in 2024 [1][2] - Banks are adjusting their business strategies and enhancing risk control measures while restructuring their organizational frameworks to adapt to the current economic downturn [1][7] - The credit card business is expected to face both opportunities and challenges as the Chinese economy stabilizes and consumer markets recover starting in 2025 [1][11] Performance Trends - As of the end of 2024, major banks like China Merchants Bank and Ping An Bank reported declines in credit card circulation and transaction volumes, with Ping An Bank's circulation down by 12.92% [2][4] - The total number of credit cards in China decreased by 5.14% year-on-year, with the overall number of bank cards growing only slightly by 1.29% [2][6] Risk Management and Strategy Adjustments - Banks are focusing on risk management and adjusting their credit card business strategies, with an emphasis on improving asset quality and managing risks throughout the credit lifecycle [7][8] - The number of overdue credit card loans has increased, with the total amount of overdue loans reaching 1.42% of the total credit card balance by the end of 2024, the highest level in seven years [5][6] Market Dynamics - The credit card business is transitioning from aggressive growth to a focus on existing customer bases, with banks increasingly prioritizing localized management and tailored services [9][10] - The shift towards refining operations and enhancing customer engagement is seen as a tactical adjustment rather than a strategic retreat, aimed at optimizing resource allocation [9][10] Future Outlook - With the implementation of policies aimed at boosting consumption, the credit card business is anticipated to enter a new growth phase in 2025, supported by the overall recovery of the consumer market [11]