WSJ: Citibank Takes Risk Issuing Cards in China

For a lender, China also is fraught with risks. China's financial system is riddled with problems, and the nation has an immature consumer-credit culture. China has widespread bank fraud, limited market-research data and only one credit bureau, located in Shanghai, notes Wei Yen, a senior credit officer at Moody's Investors Service in Hong Kong. Many Chinese hold fake identity cards, and there is potential for widespread counterfeiting of credit cards in China, Mr. Yen adds. "Things could get ugly very quickly in China's credit-card business," he says.