Emerging Opportunities in the Chinese Consumer Finance Market: Market Size, Strategies, Products, and Competitive Landscape

Emerging Opportunities in the Chinese Consumer Finance Market: Market Size, Strategies, Products, and Competitive Landscape

Executive Summary

The Chinese consumer finance market recorded a compound annual growth rate (CAGR) of 28.33% during the review period (2007–2011). It is projected to retain a high CAGR of 24.30% over the forecast period (2012–2016). The strong growth will be driven by the country’s improving macroeconomic fundamentals and rising domestic demand for consumer finance products. Housing loans is the largest category in the Chinese consumer finance market. It recorded a CAGR of 24.65% during the review period. The housing loans category is projected to record a CAGR of 20.86% over the forecast period. The Chinese population has traditionally been skeptical of using credit to finance anything other than housing. However, as the country’s disposable income levels increase, consumers are becoming more willing to access personal loans. The changing lifestyles in China have encouraged the growth of credit cards. The number of credit cards issued in China increased at a CAGR of 27.47% during 2008–2011. Banks are offering lucrative schemes to encourage people to convert their transactions into equal monthly installments (EMIs), and this is also driving the growth of credit card loans in China. The Chinese government introduced various measures to control the sharp increase in property prices during the review period. These measures prohibited mortgages for third-home purchasers and increased the downpayment for second-home purchases from 50% to 60%. These measures will have an adverse impact on the Chinese housing loan category over the forecast period. 

Key highlights of this title

  • The Chinese consumer finance market recorded a compound annual growth rate (CAGR) of 28.33% during the review period (2007–2011). It is projected to retain a high CAGR of 24.30% over the forecast period (2012–2016).
  • Housing loans is the largest category in the Chinese consumer finance market. It recorded a CAGR of 24.65% during the review period.
  • Credit card loans were the fastest-growing category in the Chinese consumer finance market due to its low initial starting base.
  • The penetration of personal loans is very low in China, as only 5% of the total consumer finance market value is used for personal loans.
  • The auto loans category recorded a strong CAGR of 37.88% during the review period.
  • The education loan category is still very small in the Chinese consumer finance market, as most families use their personal saving to pay for the education fees and expenses of their children. As a result, the Chinese education loan category is relatively undeveloped.

Scope

  • This report provides an extensive analysis on the consumer finance market in China
  • It details historical values of consumer finance market in China for 2007–2011, along with forecast figures for 2012–2016
  • The report provides a detailed analysis on key trends and drivers, challenges in consumer finance market in China
  • It outlines current regulatory framework in the industry
  • It provides the competitive landscape in the Chinese consumer finance market
  • It details the marketing strategies adopted by various companies
  • It profiles the major banks in China

Reasons to Purchase

  • Make strategic business decisions using top-level historic and forecast market data related to the Chinese consumer finance market
  • Understand the key market trends and growth opportunities In Chinese consumer finance market
  • Assess the competitive dynamics in the Chinese consumer finance market
  • Gain insights in to the marketing strategies adopted by companies to sell consumer finance products
  • Gain insights into key regulations governing the consumer finance market in China

More information available at: http://bricdata.com/research/report/IS2017MR/

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