Market Report, "Consumer Lending in China", published

Easing policies secure mortgages/housing gross lending

Mortgages/housing remains the most significant category within consumer lending in terms of outstanding balance. Over the review period, authorities in China cut the minimum down payments required for both first and second properties, and reduced the term of ownership required to qualify for exemption from business taxes when selling a house from five years to two. Such strong incentives resulted in positive growth in mortgages/housing in gross lending terms, from an already huge base, and stabilised overall consumer lending.

Further development of rural market benefits non-card lending

In March 2015, People’s Bank of China (PBC) issued a notice that encouraged consumer finance companies and auto finance companies to further expand in rural areas, with a focus on other personal lending and durables lending, which will benefit overall non-card lending to some degree.

Full Report Details at
- http://www.fastmr.com/prod/1072644_consumer_lending_china.aspx?afid=301

Internet finance expands non-card lending

Internet finance, such as other personal lending issued online, gained popularity over the review period. Such services offer greater convenience to borrowers compared to traditional lending products, with application processing, qualification of borrowers and issuing of loans undertaken online, and are increasingly popular among young borrowers. The entry of two internet private banks – Webank and MYbank – over the review period increased the presence of internet finance, and the availability of non-card lending, other personal lending and durables lending in particular.

Deceleration of card lending as market matures

Card lending witnessed slower growth in terms of outstanding balance and gross lending in 2015. The staple market of card lending remains developed cities, especially tier-one cities such as Shanghai and Beijing. To cope with market saturation, lenders within card lending invested in product differentiation to seek new growth engines

Slowdown to continue in consumer lending

Consumer lending is projected to experience decelerating but still stable growth in terms of both gross lending and outstanding balance over the forecast period. Mortgages/housing will witness a tepid performance, due to the downturn of China’s residential market, while non-card lending will see a much more dynamic performance thanks to the emergence of new lenders, especially online players, and an increase in the number of loans granted by established lenders.Report Overview

Discover the latest market trends and uncover sources of future market growth for the Consumer Lending industry in China with research from Euromonitor's team of in-country analysts.

About Fast Market Research

Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156 (1.413.485.7001 Int'l)

You may also be interested in these related reports:

- Consumer Lending in Austria
- Consumer Lending in Thailand
- Consumer Lending in Indonesia
- Consumer Lending in Taiwan
- Consumer Credit in the UK - Key Trends and Opportunities to 2019