November 29, 2024 - 04:00
HSBC is set to scale back its credit card operations in China, marking a significant shift in its strategy after eight years of attempts to establish a foothold in the competitive market. Sources familiar with the situation indicate that the bank has faced challenges in expanding its customer base and achieving profitability in the world's second-largest economy.
As part of this strategic retreat, HSBC has ceased the issuance of new credit cards and is in the process of winding down its services for a substantial portion of its onshore customers in China. However, the bank may continue to provide credit card services to a select group of "high-end" clients, according to insiders.
This decision reflects broader trends in the banking sector, where foreign institutions are reassessing their operations in China amid regulatory complexities and fierce domestic competition. HSBC's move underscores the difficulties faced by international banks in navigating the evolving landscape of China's financial services market.
