Credit Cards in China

Reuters reports this morning on the entry of two major banks into the credit card market in China.

U.S. giant Citibank and HSBC Holdings Plc, the world's two biggest banks by market value, have become the first foreign lenders to get their feet in the door of China's credit card industry. Offering technical and management expertise to their local partners, who have won approval to issue credit cards to Chinese customers, both banks can begin to make their mark on a highly lucrative but largely closed business in China. Still, analysts said on Friday the road remained long, since China was not committed to opening its retail banking sector until 2007 under pledges made on joining the World Trade Organization.