BACK

Breaking News

Bank of America to offer credit cards in China

Summary

Bank of America will join with China Construction Bank to offer credit cards in China.

The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.

Bank of America plans to join forces with China Construction Bank to offer credit cards to Chinese consumers.

Compare Low Interest Credit CardsIn an announcement by the two companies on April 16, 2007,  BofA and CCB outlined their plans to develop a co-branded credit card business.

Their two-stage business plan involves CCB first establishing an independent credit card division, with Bank of America supplying consulting services.  The credit card unit would later be spun off as a co-branded joint venture.  CCB would own 63 percent of this joint venture and BofA the remaining 37 percent.

Bank of America will acquire the stake following approval from the Chinese government, which intends to change the way joint ventures are regulated.

BofA CEO Ken Lewis said that for his bank, the deal represents a strategic collaboration in one of the world’s fastest-growing economies.  He added that the collaboration enables Bank of America to deepen its alliance with CCB while simultaneously positioning BofA to take part in future growth in the Chinese market once new regulations are passed.

The move by BofA follows in the footsteps of rivals Citi and HSBC, which have teamed with Shanghai Pudong Development Bank and Bank of Communications, respectively.

China has around 30 million credit card accounts, versus approximately 500 million credit card accounts in the U.S.

CCB stated that 2006 saw a doubling in the number of credit cards issued, card spending, and overdraft balances.  The bank has issued 6.34 million credit cards overall, with half that amount coming in 2006 alone.  CCB reported that with credit card purchases totaling US$5.24 billion, it has the highest spending per credit card in China.

While CCB also notes that it is China’s No. 2 credit-card issuer with 20 percent of the market, the country has no independent third-party organization to confirm market share claims.

Editorial Disclaimer

The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

What’s up next?

In Breaking News

Mastercard to be used at Coca-Cola vending machines

Following a contract with Coca-Cola, Mastercard will be accepted for vending machine purchases. Learn more at CreditCards.com.

See more stories
Credit Card Rate Report Updated: August 5th, 2020
Business
13.91%
Airline
15.48%
Cash Back
16.09%
Reward
15.82%
Student
16.12%

Questions or comments?

Contact us

Editorial corrections policies

Learn more

Join the Discussion

We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

The editorial content on CreditCards.com is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company’s business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.