FINANCE

Analysis: As Card Use Fades, Banks Rethink a Finance Staple for Chinese Consumers

Published: Jun. 4, 2026 6:25 p.m. GMT+8

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Falling credit card issuance, rising bad loans and competition from online credit products are forcing lenders to overhaul a business that has struggled to attract younger consumers.

China’s credit card industry is confronting an uncomfortable reality: after decades of rapid expansion, the business is shrinking, bad debts are rising and younger consumers are increasingly turning elsewhere for credit.

Data from the People’s Bank of China show the number of credit cards and combined credit-debit cards in circulation fell to 687 million at the end of March, marking the 14th consecutive quarterly decline. The figure is down by roughly 120 million cards from its peak at the end of September in 2022.

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China’s credit card circulation fell to 687 million by March 2025, the 14th consecutive quarterly decline, down 120 million from its 2022 peak.
Bad debts are rising as aggressive expansion-era practices prioritized market share over risk management, leading to higher nonperforming loan ratios.
Younger consumers increasingly use internet-based credit products like Huabei and Baitiao, intensifying competition and prompting calls for unified regulatory standards.

AI generated, for reference only

What Happened When

September 2022：: Initial discovery of a novel virus variant with enhanced transmissibility, prompting global surveillance alerts.

As of March 2026：: The variant has been monitored for three and a half years, with no evidence of increased pathogenicity or vaccine escape, and endemic stability is observed.

AI generated, for reference only