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.
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.
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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.
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If you're in the Consumer Lending industry in China, our research will save you time and money while empowering you to make informed, profitable decisions.
The Consumer Lending in China market research report includes:
Analysis of key supply-side and demand trends
Historic volumes and values
Five year forecasts of market trends and market growth
Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
What is the market size of Consumer Lending in China?
What are the major trends set to impact the market in China?
What capacity for consumer debt still exists in the market?
What’s the state of credit quality in the market?
Has the economic downturn reset the lender competitive landscape?
Why buy this report?
Gain competitive intelligence about market leaders
Track key industry trends, opportunities and threats
Inform your marketing, brand, strategy and market development, sales and supply functions
Euromonitor’s industry reports, including Consumer Lending in China, originate from our database within our Consumer Finance market share and market size database, Passport, a platform which analyses Consumer Finance in 46 countries and globally.