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 Viewpoint - The trend of banks discontinuing co-branded credit cards is increasing, reflecting changes in market dynamics and consumer behavior, leading to a focus on more efficient product offerings [1][4][7]. Group 1: Discontinuation of Co-branded Credit Cards - Guangfa Bank announced the discontinuation of five co-branded credit cards starting February 1, 2026, due to the expiration of cooperation agreements [1]. - Major banks, including state-owned banks and regional commercial banks, have also stopped issuing co-branded credit cards across various sectors such as e-commerce and travel [1][4]. - The phenomenon of discontinuing co-branded credit cards is becoming common, with banks like Zhejiang Rural Commercial Bank and Wuhan Rural Commercial Bank ceasing to issue specific co-branded cards [4][5]. Group 2: Market Changes and Challenges - The credit card market has become saturated, with many users holding multiple cards that are underutilized, prompting banks to streamline their offerings [7][8]. - The decline in the effectiveness of co-branded credit cards is attributed to changing market conditions, where banks struggle to maintain profitable partnerships with co-branding entities [7][8]. - The operational costs associated with maintaining co-branded cards, including high authorization fees and marketing expenses, have led banks to reduce their product lines [6][8]. Group 3: Organizational Adjustments - Banks are undergoing structural changes, closing down several regional centers and consolidating their credit card operations to improve efficiency [9][10]. - The integration of credit card functionalities into main banking apps is a trend, with institutions like Bank of China shutting down independent credit card apps to streamline services [9][10]. - The focus is shifting from acquiring new customers to enhancing the value of existing customer relationships through tailored services and benefits [10]. Group 4: Future Outlook - The total number of credit cards in circulation has decreased significantly, with a drop of approximately 1 billion cards, or 12%, from the peak in June 2022 [10]. - The future competitiveness of banks will depend on their ability to leverage credit cards to enhance retail service offerings and respond to evolving consumer needs [10].