Chinese, foreign banks jointly develop credit cards

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Last updated at: (Beijing Time) Tuesday, January 06, 2004

Chinese, foreign banks jointly develop credit cards

Foreign banks are trying to enter China's credit card market by joining with their Chinese counterparts in issuing credit cards.

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Foreign banks are trying to enter China's credit card market by joining with their Chinese counterparts in issuing credit cards.

The Bank of Shanghai (BOS) has issued a credit card which can be used worldwide. The Hong Kong and Shanghai Banking Corporation (HSBC), as one of shareholders in the BOS, will engage in promoting the credit card on the international market. Card holders also enjoy special privileges in Hong Kong provided by the broad network of the HSBC.

The HSBC bought an 8 percent stake in the BOS in 2001, and began cooperation on a broad range of financial matters.

Meanwhile, the Shanghai Pudong Development Bank (SPDB) has issued a credit card using management and technology of Citibank, under the Citigroup.

According to Chinese law, foreign banks are not allowed to do personal Renminbi business in China. But China promised to open the sector to foreign banks in 2006 when it entered the WTO.

Meanwhile, Chinese banks, with comparatively poor international networks and inferior service, need overseas counterparts to help them with credit card promotion.

Experts have noted that the credit card market will become the next key sector for cooperation between Chinese and foreign banks.

"The contribution of Citibank, the largest credit card issuer and financial institute in the world, will ensure our customers get the best services and banking products," said Jin Yun, president of the SPDB.

The Chinese government is encouraging credit consumption, and statistics show that 1 million of China's 1.3 billion people are already credit card holders.

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