Commentary

Issuing more credit cards could benefit Chinese lenders

Owning a credit card can seem like a rite of passage in the United States, where even a college student with no income can sign up and start swiping. More than two-thirds of Americans over the age of 15 carry plastic.

In China, however, just 21 per cent do. That's not because they don't want to shop. In a recent survey of 3,100 Internet users, UBS Group found that 44 per cent plan to consume more, spending on items such as smartphones and air-conditioners, while only one-third intend to scale back.

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A version of this article appeared in the print edition of The Straits Times on April 23, 2019, with the headline 'Issuing more credit cards could benefit Chinese lenders'. Print Edition | Subscribe