Credit Cards will be widely used in China

Online shopping is a common thing in the most of western countries.

Shopping is an interesting thing, but what if you don't have cash or avaiable fund on your bank account? To do this, you must have a card indicating that you have been granted a line of credit. It enables you to make purchases or withdraw cash up to a prearranged ceiling. The credit granted can be settled in full by the end of a specified period or can be settled in part, with the balance taken as extended credit. Interest is charged based on the terms of the credit card agreement and you are sometimes charged an annual fee.

According to a latest survey by ACNielsen credit card (standard credit card and quasi credit card) markets in Beijing, Shanghai and Guangzhou develop quickly. Credit card penetration rate has increased from 18 percent in 2003 to 22 percent this year. China is changing from "cash payment era" to "credit card era".

ACNielsen conducted a telephone survey on more than 2,700 people between 18 and 54 in Beijing, Shanghai and Guangzhou in order to study the attitude of China's different consumer groups on main personal financial products such as personal bank, credit card, personal loan, life insurance and personal investment and how they are used. This way the growth opportunity of personal financial market could be explored and reflected.

An analysis by age group shows that consumer group between 25 and 34 have the highest credit card possession rate, with persons who have one or more credit cards reaching 35 percent. Of the three cities Beijing has the highest penetration rate among the age group, about 39 percent people have at least one credit card.

Among the many credit cards issued by Chinese and overseas banks ICBC's (Industrial and Commercial Bank of China) Peony Card is the most popular, which enjoys a possession rate of 13 percent. CCB's (China Construction Bank) Long Card and BOC's (Bank of China) Great Wall Card follow it with possession rates of 9 percent and 6 percent respectively.