regulatory changes

China’s credit card decline began in 2014 as fintech platforms like Alipay disrupted traditional banking. A pivotal 2014 clash between Ant Financial and state-owned banks, including ICBC, led to regulatory shifts and Alipay partnering with China Construction Bank. Fintech services (e.g., Huabei, JD’s Baitiao) replicated credit card features, eroding their dominance. Post-2020 property regulations accelerated declines, with 100 million cards phased out by 2024. Banks now prioritize high-net-worth clients amid rising defaults and acquisition costs. Falling birthrates, fintech’s grip on lower-tier markets, and household savings trends further challenge recovery, echoing Japan’s and South Korea’s credit crises.