Core Viewpoint - The adjustment of credit card business by Guangfa Bank reflects a broader trend in the banking industry, where many banks are discontinuing co-branded credit cards and shifting focus from quantity to quality in their credit card offerings [1][4]. Group 1: Business Adjustments - Guangfa Bank will stop issuing five co-branded credit cards starting February 1, 2026, and will further discontinue several proprietary products on February 11, 2026 [1][2]. - This trend is not isolated to Guangfa Bank; multiple banks, including major state-owned banks and smaller institutions, have announced similar discontinuations of co-branded credit cards since 2025 [2][4]. - For instance, Pudong Development Bank ceased issuing 18 credit card products due to business strategy adjustments, and Wuhan Rural Commercial Bank announced the termination of its co-branded credit card with Taopiaopiao and Damai [2]. Group 2: Industry Trends - As of the third quarter of 2025, the total number of credit cards and loan cards in China was 707 million, marking a continuous decline over 12 consecutive quarters [3]. - The phenomenon of "new card promotion followed by card cancellations" has been prevalent, with co-branded cards being particularly affected as their appeal diminishes when associated IPs lose popularity [4]. - The credit card industry is undergoing a period of intense competition, prompting banks to focus on product innovation and operational efficiency to retain customers [4][8]. Group 3: Sustainable Development - The closure of credit card centers is a significant adjustment within financial institutions, with over 60 credit card centers shutting down since 2025 [6][7]. - The banking sector is actively reducing non-performing loans, with a reported balance of 3.5 trillion yuan in non-performing loans as of the third quarter of 2025, an increase of 88.3 billion yuan from the previous quarter [8]. - To achieve sustainable development, credit card institutions must prioritize product innovation, application scenarios, and asset quality, transitioning from a focus on acquiring new customers to enhancing existing customer value [8].

Core Viewpoint - The credit card business in China is undergoing significant adjustments, with many banks, including Guangfa Bank, halting the issuance of various co-branded credit cards, indicating a shift from quantity-focused strategies to quality-driven approaches in the industry [1][2][3]. Group 1: Credit Card Business Adjustments - Guangfa Bank officially launched a new round of credit card business adjustments in February 2026, ceasing the issuance of five co-branded credit cards starting February 1, 2026, and further discontinuing several proprietary products on February 11, 2026 [1]. - The trend of discontinuing co-branded credit cards is not isolated to Guangfa Bank; multiple banks, including major state-owned banks and smaller institutions, have announced similar actions since 2025 [2]. - As of the third quarter of 2025, the total number of credit cards and loan cards in China reached 707 million, marking a continuous decline over 12 consecutive quarters [3]. Group 2: Industry Trends and Insights - The observed trend of "active card issuance but declining card cancellations" has been prevalent, with co-branded cards being particularly affected due to their reliance on specific IPs and events, which lose appeal over time [3]. - The credit card industry is entering a phase of meticulous refinement, with banks focusing on product innovation and operational strategies to enhance customer retention and acquisition [4]. - Since 2025, over 60 credit card centers have been closed, reflecting a broader "inventory reduction" trend within the industry, as banks aim to reduce non-performing loans [4]. Group 3: Strategic Shifts in Credit Card Operations - The shift in focus from quantity to quality in credit card issuance is evident, with banks now prioritizing value contribution and sustainable development in their credit card operations [4]. - The integration of retail banking services, including savings, investments, loans, and credit cards, is becoming increasingly common, enhancing the overall financial service quality for high-end clients [4]. - Credit card institutions are encouraged to strengthen their online platforms and service capabilities, creating an integrated operational system that combines cards, mobile applications, scenarios, and benefits to drive growth and customer engagement [5].

Core Insights - The People's Bank of China reported that by the end of Q2 2025, the total number of bank accounts in the country reached 15.238 billion, with 10.068 billion bank cards issued, reflecting a quarter-on-quarter growth of 0.68% [3][4] - Credit card and loan cards totaled 715 million, showing a quarter-on-quarter decline of 0.83% and a year-end decrease of 12 million [4][6] - The transaction volume of bank cards increased in terms of the number of transactions but decreased in transaction amounts, with 146.662 billion transactions amounting to 226.7 trillion yuan, a quarter-on-quarter decrease of 12.06% [4][5] Banking Sector Trends - The number of bank accounts opened includes 1.16 billion corporate accounts and 15.122 billion personal accounts, indicating a strong consumer banking presence [4] - The decline in credit card issuance has led to several banks shutting down credit card centers, shifting focus towards localized comprehensive financial services [8][9] - The credit card business is transitioning from aggressive customer acquisition to focusing on existing customer value, emphasizing quality over quantity [10][14] Credit Card Market Dynamics - The total number of credit cards has been on a downward trend, with a peak of 800 million in 2021, now down to 727 million in 2024, a decrease of 40 million year-on-year [6][10] - The overdue credit card loans reached 1239.64 billion yuan by the end of 2024, marking a year-on-year increase of 26.31% [7][14] - Banks are increasingly promoting credit card installment plans as a strategy to attract customers and respond to national policies aimed at stimulating consumption [12][14] Payment Processing Insights - In Q2 2025, banks processed 800.53 billion electronic payment transactions amounting to 85.816 trillion yuan, with online payments accounting for 182.17 billion transactions [5] - Non-bank payment institutions also saw a rise in transaction numbers, processing 3338.45 billion transactions worth 8.211 trillion yuan in Q2 2025 [5] Strategic Shifts in Banking Operations - Banks are consolidating credit card operations to reduce costs and enhance efficiency, focusing on digital marketing and customer acquisition [8][9] - The shift towards localized operations allows banks to better understand customer needs and provide tailored financial services [9][10] - Future developments in the credit card sector are expected to integrate digital solutions and wealth management, creating a comprehensive financial service ecosystem [9][10]