Core Viewpoint - The use of credit card funds for stock trading is prohibited by banks and regulatory authorities due to the inherent risks and misalignment with the intended purpose of credit cards, which is for consumer spending rather than investment [1][4]. Group 1: Risks of Using Credit Card Funds for Stock Trading - Using credit card funds for stock trading significantly amplifies the debt risk for cardholders due to high borrowing costs and short repayment periods, making it unsuitable for investment purposes [2]. - Credit card funds are often accessed through cash advances or other means that incur fees several times higher than brokerage financing rates, creating a burden that requires excessive returns to cover costs [2]. - The mismatch between the short repayment cycle of credit cards and the uncertain duration of stock investments can lead to financial distress for investors [2]. Group 2: Impact on Banking and Risk Management - The diversion of credit card funds into the stock market undermines the established risk management frameworks of banks, which are based on predictable consumer behavior and spending patterns [3]. - This shift necessitates increased operational costs for banks as they must invest more resources to meet compliance requirements and manage the heightened risk associated with stock market volatility [3]. - The potential for increased default rates and bad debts due to stock market investments poses a threat to the asset quality of banks [3]. Group 3: Broader Financial Market Implications - The speculative nature of using credit card debt for stock trading can disrupt normal market operations, leading to irrational price fluctuations and undermining the price discovery process [4]. - Such practices transfer stock market risks to the banking system, increasing the overall risk exposure of the financial system [4]. - The consequences of investment losses can lead to a cycle of debt for cardholders, potentially impacting the stability of the credit market and the broader financial ecosystem [4].

Core Viewpoint - Recent announcements from multiple banks emphasize that credit card funds cannot be used for investment purposes, aiming to prevent financial risks associated with credit funds flowing into the stock market as investor enthusiasm rises [1][5]. Summary by Sections Credit Card Usage Regulations - Several banks, including Ping An Bank and CITIC Bank, have reiterated that credit card funds, including cash advances, must not be used for investment activities such as purchasing stocks, funds, futures, and other financial products [3][4]. - Banks have implemented stricter regulations on cash advances, stating that these funds cannot be used for any non-consumption activities, including investments [4][6]. Market Context - The A-share market has shown strong performance recently, leading to increased investor interest, which may tempt some cardholders to use credit cards for stock investments [5][10]. - The People's Bank of China and the former China Banking and Insurance Regulatory Commission issued guidelines in 2022 that explicitly prohibit the use of credit card funds for investment, and recent bank announcements reflect a deeper implementation of these regulations [4][10]. Risks of Using Credit Cards for Investments - Using credit card funds for stock trading can lead to severe consequences, including transaction failures and potential criminal charges for malicious overdraft [6][8]. - The high-interest rates associated with credit card cash advances can amplify investment risks, leading to significant financial pressure if investments do not perform well [10][11]. Recommendations for Investors - Experts advise investors to strictly adhere to the intended use of credit card funds for daily consumption and to avoid any attempts to circumvent regulations through indirect methods [11]. - Maintaining credit health by making timely repayments and understanding the risks associated with using credit cards as investment leverage is crucial [11].