Chinese Banks Face Increasing Risk of Credit-Card Delinquencies

Despite ramped up efforts to crack down on fraud, unpaid credit-card debts rose in China in the first quarter of the year, says the South China Mornig Post.

 

Citing the People's Bank of China, the Post says that 8.8 billion yuan of credit-card debt was at least six months overdue, up 14.4% from the end of last year.

 

"The delinquency rate will continue to climb as the credit-card business is still growing on a fast track," Guotai Junan Securities analyst Wu Yonggang told the Post. "But it is still early to gauge the severity of the problem since the figure of credit-card transactions is relatively low in China."

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