Author: greendragon

Would China develop it's own credit card system? [Copy link] 中文

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Post time 2009-11-3 11:20:35 |Display all floors

Mr. CaringHK, you must be very good in banking system!

Why can't she use that card that looks very much like JCB, Japan card?

....please teach me, you are such a smart fellow!
I am a simple person, but it does seem that we don't have a good system outside China!


Green DRagon
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Post time 2009-11-5 22:46:05 |Display all floors
Actually the subject of a credit card system is bigger than just a piece of plastic with credit facilities.

If we think carefully, it is part of a bigger system which can support, enable and expand the whole universe of financing businesses, increasing the velocity of progress, reducing unemployment and funding research and development.

That bigger system has to do with two basic ideas:  using money to make money, and moving money safely and seamlessly.  

It is noted that big reserves are not fully tapped for additional wins from investment or interest gain.  However it is perhaps the attempts made in the financial west to realize these objectives which had caused their institutions and banks to overextend themselves until they burned out.  It is a matter of governance and proper due diligence, human integrity and technology.  The study of why the western financial system has collapsed should be done with one eye on what lessons to learn in order to avoid their mistakes while tapping the benefit of using money to make money.

The other aspect of moving money safely and seamlessly can be expanded with many creative ideas.  M-payment is just one of the old technologies; v-commerce was also considered.  In this century, it will be inevitable that how money is moved and deployed will become even more significant in impact.

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Post time 2009-11-6 13:38:02 |Display all floors

Is M-payment = mobile payments?

.....credit cards, debit cards.

what is V-payment?


Green DRagon
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Post time 2009-11-6 13:47:53 |Display all floors

China i think has very simple financial systems!

But it's rapidly learning and developing!

Just 20 years ago, MORTGAGE was not possible.
Citizens needs to pay CASH to buy a new home!
(but then homes were allocated by the state and subsidized, so was cheap! Quality attrocious due to lack of profit motive and competition!)

I think MORTGAGE only came into being only 15 years back!

Money then was responsibly FIAT printed by the State!
Later, China's foreign investment by the "cheap labour searching oversea's chinese entrepreuners contributed to expansion of cash in China by exchanging Dollars for Rmb.

This is similar to Hong Kong and Singapore's CURRENCY BOARD system, which practically ensure that the S$, HK$ is backed by a similar or more sum of US$, Bpd, JYen or EURO. This appear to be rudimentary system and is a prefered system for a foreign technological dependent society. Works wonders!

It's was also a big battle between Uncle Lee and the then Malaya Minister of Finance, Mr. Tan Siew Sin.

A fiscal discipline method to keep a nation in a certain pecking order!

ha ha ha

and I was hoping Mr. Zen CaringHK would help us here! Help us to discuss the Modern, past and Future systems!


Green DRagon
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Post time 2009-11-6 14:06:23 |Display all floors
Originally posted by markwu at 2009-11-5 22:46
Actually the subject of a credit card system is bigger than just a piece of plastic with credit facilities.

If we think carefully, it is part of a bigger system which can support, enable and exp ...



great job leading the crusade against excessive credit card debt but remember the current crisis was not caused by credit cards but by mortgages.

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Post time 2009-11-6 14:10:12 |Display all floors
I find it very interesting that most people here do not seem to have any idea about how credit cards work in China.

In 2007 there were 100,000,000 credit cards in China issued by Chinese banks to Chinese people.
many of them were only to the very rich as there were only 40,000,000 users.

Growth rate of cards was 51% and growth rate of users was 54%.  
If those trends continued then there are probably 100,000,000 users and 250,000,000 cards now.  Very soon there will be more credit cards in China than in the US.

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Post time 2009-11-6 14:55:50 |Display all floors

Reply #27 Exergy's post

it's not card ownership but CHINA's capability to master the art!


Green DRagon
Game Master

note: and there are still some people talking about "red methods". The only think "red" in China is the political control is in the hands of "educated from a certain region of China which are populated by farmers and coal mine workers"

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