Core Insights - The credit card market is shifting towards managing existing customers due to saturation and cost-cutting measures by banks, with adjustments in overdraft interest rates aimed at reducing costs for cardholders to encourage usage [1][6][8] - Everbright Bank has adjusted its credit card overdraft interest rate from a fixed range of 0.035%-0.05% to a new range of 0%-0.05%, allowing for the possibility of 0% interest for high-quality cardholders [2][3] - The overall trend in the credit card industry shows a decline in new card issuance and transaction volumes, prompting banks to focus on retaining existing customers rather than acquiring new ones [6][7][8] Summary by Sections Credit Card Interest Rate Adjustments - Several banks, including Everbright Bank, have begun to break the long-standing fixed overdraft interest rate of 0.05%, with Everbright's new standard effective from September 29, 2025 [2][3] - The adjustment allows for a potential annual interest rate range of 0%-18.25%, reflecting a significant shift in pricing strategy [2][3] Market Conditions and Trends - The credit card market is experiencing saturation, with a notable decline in new card issuance since 2022, leading to a total of 715 million credit cards in circulation by mid-2025, a decrease of 6 million from the previous quarter [6][7] - The decline in transaction volumes and the need for banks to reduce costs have made it essential to lower fees and interest rates to retain existing customers [6][8] Strategic Focus on Existing Customers - Banks are increasingly focusing on existing customer relationships, as acquiring new customers has become more challenging and costly, with an average acquisition cost of 500 yuan per new cardholder [8][9] - The revenue model for credit cards relies heavily on interest income from overdrafts, which has become a critical area for banks to enhance customer loyalty and usage [8][9] Regulatory and Policy Changes - The People's Bank of China has facilitated a more market-driven approach to credit card interest rates since 2021, allowing banks to negotiate rates with cardholders [4][5] - The recent adjustments in interest rates reflect a broader trend towards personalized pricing and differentiation in service offerings to attract high-quality customers [5][9]

Core Viewpoint - Everbright Bank has adjusted its credit card overdraft interest rates, allowing some high-quality customers to enjoy a 0% overdraft rate, reflecting a response to regulatory push for market-oriented pricing in credit card overdrafts [1][2]. Group 1: Regulatory Changes - The People's Bank of China is promoting the marketization of credit card overdraft interest rates, having removed upper and lower limits on these rates since January 1, 2021 [2]. - Recent modifications to regulatory documents indicate a shift towards more flexible pricing for credit card products, enabling banks to differentiate rates based on customer profiles [2][3]. Group 2: Current Market Trends - Despite regulatory encouragement, the overall pace of adjustment among banks remains slow, with many still applying a uniform overdraft rate of 0.05% [3]. - Some banks, like Guangfa Bank and Kunlun Bank, have set their overdraft rates between 0% and 0.05%, while others maintain a standard rate but allow for adjustments based on customer creditworthiness [3]. Group 3: Industry Outlook - Industry experts believe that the credit card market is entering a phase of stock competition, where differentiated pricing can enhance customer loyalty and attract high-quality clients [4]. - The overall credit card business is experiencing contraction as some customers shift to lower-rate consumer loans, despite a general decline in lending rates for other products [4][5]. - Banks are moving away from aggressive expansion strategies and are focusing on refined operational models, emphasizing detailed customer management [6].

Core Viewpoint - Everbright Bank has adjusted its credit card overdraft interest rate, allowing some high-quality customers to enjoy a 0% overdraft rate, reflecting a response to regulatory push for market-oriented pricing in credit card overdraft rates [1][2]. Group 1: Market Changes - The new interest rate standard for credit card overdrafts is set at a daily rate of 0% to 0.05%, approximating an annual interest rate of 0% to 18.25% [1]. - The People's Bank of China has removed the upper and lower limits on credit card overdraft rates, allowing banks to set rates based on negotiations with cardholders [2]. - The overall adjustment pace of credit card overdraft rates among banks has been slow, with many banks still applying a uniform daily rate of 0.05% regardless of customer qualifications [2][3]. Group 2: Industry Trends - The credit card market is entering a phase of stock competition, where differentiated pricing of overdraft rates can enhance customer loyalty and attract high-quality clients [3][4]. - The number of credit cards issued has decreased, with 715 million cards in circulation as of the end of the second quarter, reflecting a downward trend [3]. - Banks are shifting from a rapid expansion model to a more refined operational approach, focusing on detailed user management [4].

Core Viewpoint - The credit card overdraft interest rate adjustment by a certain bank marks a significant shift towards differentiated pricing based on customer creditworthiness, potentially benefiting high-quality credit card users by reducing or eliminating interest charges [2][4]. Group 1: Interest Rate Adjustment - A certain bank announced a change in its credit card overdraft interest rate from a range of "daily interest rate of 0.035% to 0.05%" to "daily interest rate of 0%-0.05%, with an approximate annual interest rate of 0%-18.25%" effective from September 29 [2][3]. - This is the first instance in the industry where a bank has publicly broken the previous interest rate range, indicating that high-quality credit card customers may not incur overdraft interest [2][4]. Group 2: Market Pricing and Regulation - The adjustment aligns with the central bank's 2020 directive to promote market-oriented pricing for credit card overdraft rates, allowing banks to negotiate rates with cardholders without fixed upper and lower limits [4][5]. - Despite the regulatory changes, few banks have actively implemented differentiated pricing strategies until now, indicating a slow adoption of the market-oriented approach [4][6]. Group 3: Industry Challenges - The credit card industry is facing challenges, with many banks reporting a decline in transaction volumes and an increase in non-performing loans [7]. - As the competitive landscape shifts, banks are focusing on refining their customer segmentation and enhancing digital integration to create proprietary consumption ecosystems [7].

Core Viewpoint - Recent adjustments by multiple banks to credit card overdraft interest rates indicate a shift towards a more market-oriented pricing strategy, potentially benefiting high-quality credit card users with lower rates [1][2]. Group 1: Interest Rate Adjustments - Several banks have recently revised their credit card overdraft interest rate standards, breaking the previous 0.05% overdraft rate benchmark [1]. - Everbright Bank announced a change in its credit card overdraft interest rate from "daily rate of 0.035% to 0.05% (annual rate of 12.7750%-18.2500%)" to "daily rate of 0%-0.05%, approximating an annual rate of 0%-18.25%" [1]. Group 2: Market Implications - This adjustment allows for the possibility of a 0% overdraft rate for high-quality credit card users under extreme conditions [2]. - At least six banks have publicly disclosed or updated their credit card overdraft interest rate standards in response to competitive pressures from low-interest consumer loans [2]. - The market-oriented approach to credit card overdraft rates aims to provide lower pricing for select high-quality customer segments, allowing banks to generate interest income while facilitating healthy fund turnover [2].

Core Viewpoint - The credit card industry is entering a phase of stock reduction, prompting banks to adjust credit card overdraft interest rates to enhance customer engagement and competitiveness in the face of declining transaction volumes and rising competition from consumer loans [2][4][6]. Group 1: Interest Rate Adjustments - Several banks, including Everbright Bank, have revised their credit card overdraft interest rates, breaking the previous standard of 0.05% [2]. - Everbright Bank's new rate structure allows for a daily interest rate of 0%-0.05%, translating to an annual interest rate of 0%-18.25%, effective from September 29 [2][4]. - This adjustment may enable high-quality credit card users to access a minimum overdraft interest rate of 0% under optimal conditions [4]. Group 2: Market Dynamics - The central bank's recent announcements signal a move towards the marketization of credit card overdraft rates, with plans to remove existing upper and lower limits on these rates [5]. - The push for marketization has been ongoing since 2020, with the central bank advocating for the removal of interest rate caps to allow for more flexible pricing based on negotiations between issuers and cardholders [5][6]. - The decline in credit card usage and transaction volumes has prompted banks to seek ways to retain existing customers through optimized interest rates and enhanced service offerings [6][8]. Group 3: Financial Implications for Banks - The number of credit cards and combined loan cards has decreased by 92 million since 2022, with many banks reporting declines in credit card loan scales and transaction volumes [8][11]. - In the first half of the year, 16 major banks reported a reduction in credit card loan scales by 194.5 billion yuan, indicating a broader trend of declining credit card business [11]. - Despite the challenges, some banks, like China Merchants Bank, maintain stable pricing strategies for credit card interest rates, focusing on risk-based pricing and consumer protection [9][10]. Group 4: Customer Engagement Strategies - Banks are implementing various strategies to enhance customer value, such as increasing credit limits, reducing fees, and offering more benefits to attract high-quality customers [10]. - For instance, China CITIC Bank reported that 55.48% of new credit card customers in the first half of the year were high-quality clients, reflecting a shift towards targeting more profitable customer segments [10].

近日，多家银行对信用卡透支利率标准进行调整，打破0.05%的透支利率标准。光大银行（601818）近期发布的公告显示，该行 将信用卡透支利率收取标准由"日利率万分之三点五至万分之五(年利率12.7750%-18.2500%)"调整为"日利率0%-0.05%，按照单 利算法近似折算年利率为0%-18.25%"。这一优化调整将于9月29日起正式生效。 21世纪经济报道记者李览青 当信用卡行业进入存量甚至"减量"阶段，用户精细化运营终于来到信用卡透支利率标准方面。 有资深信用卡专家向21世纪经济报道记者透露，在本轮调整中目前已有至少6家银行在公开信披渠道或信用卡领用协议中，对信 用卡透支利率标准进行优化。 "面对消费贷低利率优势的冲击，信用卡透支利率市场化可以针对一部分优质客群提供比现行标准较低的定价，在考虑资金良性 周转前提下透支信用卡支付，为银行获得相应的利息收益，这是信用卡业务差异化经营的一种体现。"他表示。信用卡利率市场 化更进一步 信用卡透支利率市场化改革的政策信号，并非是从今年开始的。 8月29日，央行发布公告，拟对《电子支付指引(第一号)》等4件规范性文件进行修改，并向社会公开征求意见，其中提及删 除 ...

Core Viewpoint - Recent adjustments by some joint-stock banks to credit card overdraft interest rates signal a potential shift towards market-oriented pricing in the credit card sector, breaking the previous upper and lower limits set by regulations [1][4]. Summary by Sections Credit Card Interest Rate Adjustments - Everbright Bank announced an adjustment to its credit card overdraft interest rate, changing the standard from a daily rate of 0.035% to 0.05% (annualized rate of 12.775% to 18.25%) to a new range of 0% to 0.05%, effective from September 29, 2025 [2]. - Prior to this adjustment, the bank's credit card overdraft daily interest rate was consistently set at 0.05% [2][3]. Market Reaction and Implications - Industry experts view this move as a significant signal that banks are beginning to explore market-driven pricing for credit card overdraft rates, which could lead to more competitive offerings [4]. - The adjustment may primarily benefit customers who are unable to repay their credit card balances in full, as it could alleviate their repayment pressure [1][6]. Historical Context - The history of credit card overdraft interest rates in China shows a transition from strict regulation to a more flexible market approach, with the People's Bank of China lifting previous limits in 2021 [5]. - The initial regulatory framework set a maximum daily interest rate of 0.05% and a minimum of 0.035%, but these restrictions were removed to allow for negotiation between banks and customers [5]. Industry Trends - As the credit card industry shifts towards a focus on maintaining existing customer bases, personalized pricing strategies are becoming increasingly important for banks [6]. - The understanding of valuable customers is evolving, with banks recognizing that customers who cannot repay in full but are willing to pay back are also considered valuable [6].

Core Viewpoint - Recent adjustments by some joint-stock banks to credit card overdraft interest rates signal a potential shift towards market-oriented pricing in the credit card sector, breaking the previous upper and lower limits of daily interest rates set at 0.035% to 0.05% [1][3]. Group 1: Changes in Credit Card Overdraft Rates - Everbright Bank announced an optimization of its overdraft interest rate, changing it from a fixed range of daily interest rates of 0.035% to 0.05% (annual rates of 12.775% to 18.250%) to a more flexible model [2]. - Prior to the adjustment, Everbright Bank's credit card overdraft interest rate was consistently set at 0.05% [2]. - The new dynamic adjustment will allow interest rates to potentially fall below 0.05% based on customer creditworthiness and usage [2]. Group 2: Industry Context and Historical Background - The People's Bank of China relaxed the management of credit card overdraft interest rates in 2021, yet most banks maintained the 0.05% rate until now [1][3]. - Historically, credit card overdraft rates have transitioned from regulation to deregulation, with significant changes initiated by the central bank in 2016 and further reforms in 2020 [3]. - The recent move by Everbright Bank is seen as a pioneering step in exploring market-oriented pricing for credit card overdrafts, which could influence the broader banking industry [1][3]. Group 3: Expert Insights - Credit card expert Dong Zheng noted that the reduction in overdraft rates may have limited impact on customers who can repay in full but will alleviate the repayment pressure for those unable to do so [1][3]. - The shift towards personalized pricing strategies reflects a changing customer management philosophy within banks, emphasizing the importance of retaining customers who may not be able to repay in full but are willing to [3].

Core Viewpoint - The People's Bank of China (PBOC) is seeking public opinion on amendments to the "Electronic Payment Guidelines (No. 1)" and other regulatory documents to enhance financial legal construction and improve the central bank's legal framework [2][3]. Group 1: Amendments to Electronic Payment Guidelines - The amendments include the removal of electronic payment transaction limits and the improvement of transaction dispute resolution regulations [3][4]. - Specific changes involve deleting previous transaction limits, such as the single transaction limit of 1,000 RMB and a daily cumulative limit of 5,000 RMB for individual customers [3][4]. - The guidelines were originally published in 2005, and the need for updates arises from the rapid development of the electronic payment industry, which has seen significant growth in transaction scale and complexity [4]. Group 2: Changes to Credit Card Regulations - The PBOC is also modifying the "Notice on Credit Card Business Matters," which includes the removal of upper and lower limits on credit card overdraft interest rates and certain disclosure requirements [5][6]. - The previous regulation set the upper limit for overdraft interest rates at 0.05% per day and the lower limit at 0.035% per day [5][6]. - The changes aim to provide more flexibility in pricing and allow issuing institutions to determine interest rates based on customer risk profiles, thus promoting consumer credit development [9][10]. Group 3: Expert Opinions - Analysts suggest that the original transaction limits were necessary due to the nascent state of electronic payments in 2005, aimed at ensuring security and orderly development of electronic banking and commerce [9]. - With the maturation of the credit card market and improved risk management systems, the previous regulations are seen as restrictive, hindering market vitality and innovation [10].