Over the past three years, China’s credit card industry has undergone a sharp contraction, with nearly 100 million credit cards canceled since 2022. According to the latest data from the People’s Bank of China, the total number of credit cards in circulation — including combined credit and loan cards — fell to about 707 million by the end of the third quarter of 2025, extending a steady downward trend.
Banks are shifting their credit card strategies from rapid expansion toward quality-focused management, driven by tighter regulation and changing market conditions. Major lenders have been actively clearing inactive, or “sleeping,” cards and scaling back new issuances, although a few banks continue to record modest growth in card numbers.
The downturn is also evident in branch closures and weakening consumer usage. This year alone, 63 bank-run credit card centers have shut down. Many banks have reported declines in total card spending and outstanding credit balances, while loan quality has deteriorated, with rising delinquency rates at several major institutions. Analysts attribute the contraction to stricter regulatory policies, shifting consumer payment habits — particularly the rise of mobile payments — and broader economic pressures.
Source: Stock Times, December 8, 2025
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