Core Insights - The credit card industry in China is undergoing a significant transformation, moving away from rapid expansion and towards a focus on cost reduction and efficiency optimization [1][4][7] Group 1: Industry Trends - The total number of credit cards in China has decreased to 707 million as of the end of Q3 2025, marking a reduction of nearly 100 million cards over the past three years [1][4] - Major banks are halting the issuance of co-branded credit cards, with significant cuts announced by institutions such as Postal Savings Bank, Bank of Communications, and China Merchants Bank [2][4] - The shift from co-branded credit cards reflects a broader industry trend from a scale-driven model to a value-driven approach, as banks seek to optimize their product offerings and focus on active users [4][6] Group 2: Structural Adjustments - Banks are restructuring their credit card operations, with a clear trend towards reducing physical branches and integrating credit card services into broader retail banking operations [5][6] - The closure of credit card centers and the consolidation of apps indicate a strategic move to streamline operations and enhance decision-making efficiency [6][7] - The reduction in credit card loan balances is attributed to multiple factors, including slow consumer recovery, competition from online financial platforms, and efforts to clean up inactive accounts [7]

Core Viewpoint - The article discusses the recent trend of banks, particularly in Zhejiang, ceasing the issuance of co-branded credit cards, indicating a shift in the credit card business from expansion to cost reduction and structural optimization [2][3][4]. Group 1: Recent Developments - Zhejiang Rural Commercial Bank announced the discontinuation of the "Harvest JD Co-branded Card" across multiple rural banks [1][3]. - A wave of credit card discontinuations has been observed, with various banks, including state-owned and joint-stock banks, halting the issuance of several co-branded credit cards [4][5]. - The trend of ceasing co-branded cards has been ongoing, with major banks like Agricultural Bank and Ping An Bank previously stopping numerous themed cards [4][5]. Group 2: Market Dynamics - The adjustments in credit card offerings are driven by economic slowdown and weak consumer expectations, leading to underperformance in card issuance and stagnant consumption growth [5]. - Banks are now focusing on high-value, high-loyalty consumption scenarios rather than blindly expanding their partnership networks [5]. Group 3: Channel and Product Adjustments - Banks are undergoing a "decluttering" process in both product offerings and distribution channels, with a focus on integrating online and offline services [6][8]. - Many banks are closing down offline credit card centers and merging credit card operations into retail banking departments to reduce management costs and enhance efficiency [6][7]. Group 4: Performance Metrics - The credit card industry is experiencing a decline, with the total number of credit cards in circulation dropping to 707 million, a decrease of 20 million from the previous year, marking the third consecutive year of decline [9][10]. - Over 70% of listed banks reported a reduction in credit card loan balances by mid-2025, indicating a significant contraction in the credit card business [10]. - For instance, China Merchants Bank reported a credit card transaction volume of 2.02 trillion yuan in the first half of 2025, down 8.54% year-on-year [10].