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Report Description

Report Description

The China Loan Market is anticipated to project robust growth in the forecast period on account of the increasing number of young people considering loans as a better option, low- interest rates, growing demand from new business setups, and ease of availing loans with the increasing internet penetration.

 

The term "loan" refers to a sum of money that one or more individuals, firms, or other entities borrow from banks or other financial institutions to manage their finances in connection with foreseeable or unforeseen events. By doing this, the borrower establishes a debt that needs to be paid back with interest over a specific period. Loans are available to everyone, including people, companies, and governments. One borrows money primarily to increase their total amount of available funds. The interest and fees are a source of income for the lender. The majority of loans made to consumers in China were for homes. The next largest category was credit card loans, followed by personal loans (including auto loans, education loans, etc.).

 

Increasing Number of Younger Loan Buyers Will Lead to the Market Growth

The younger generation, who are driven to spend using borrowed money, is challenging the traditional Chinese people's economy and their high rate of household savings. Young urban people feel comfortable taking out loans to support their modern lives, which includes paying for gym memberships and tipping internet bloggers. The average consumer spending of Chinese credit card holders between the ages of 21 and 30 is growing at a faster rate. More than 330 million Chinese people born between 1990 and 2009 behave much more like Americans, spending eagerly on gadgets, entertainment, and travel, in contrast to previous generations who were thrifty savers because of their years growing up in an unstable economy with a weak social safety net. According to JPMorgan, China's household debt to GDP ratio had increased to 61% by 2020. Thus, changing lifestyles is increasing the number of young loan buyers.

 

Increasing Internet Penetration Will Boost The Market Growth

Youngsters are fast adopting new payment methods, such as online credit pay services. Installments are undoubtedly a trend and a lifestyle choice. For instance, at the beginning of 2022, China's population had a 70.9 percent internet penetration rate. Increased smartphone usage, which occurs because of rising internet penetration, makes it simpler to obtain microloan services that are unavailable through traditional banking institutions. More than ninety nine percent of young consumers can pay back loans on time, partly because vendors can screen out people with poor credit histories owing to the vast amounts of consumer data collected through internet transactions. Thus, increasing digitalization is fueling the loan market in China.

 

Decreasing Interest Rate of Automobile Consumer Loan Will Fuel the Market Growth

People's living conditions have gradually improved as living standards have increased. Automobiles are now high-end durable commodities, not just luxury items for the average person. The automotive industry is growing quickly in China as a result of the country's ongoing technological advancement and innovation capacity, and a variety of locally built and manufactured auto brands are being introduced to the market. The car loan industry has gradually grown with the expansion of the automotive sector. Numerous organizations, including banks and auto finance and leasing firms, have entered this market. As flexible vehicle financing has gained popularity and banks have lowered the interest rate on consumer loans for cars. According to a survey, loans for car purchases increased by 37.5% in June to USD8.1 billion from a month earlier. Electric vehicle sales are increasing as a result of China's decision to reduce auto loan interest rates as it works to rebuild an economy devastated by COVID-19 lockdowns.



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Market Segmentation

The China Loan Market is segmented based on type, provider type, interest rate, tenure period, region, and competitional landscape. Based on type, the market is further fragmented into secured loan and unsecured loan. Based on provider type the market is segmented into bank, non-banking financial companies and others (fintech companies). Based on interest rates the market is segmented into fixed and floating. Based on tenure period, the market is segmented into less than 5 years, 5-10 years, 11-20 years, more than 20 years. On the basis of region, the market is divided into North, East, North-East, South-Central, North-West, South-West.

Company Profiles

ICBC Co., Ltd., Bank of China, China Construction Bank Corporation, Agricultural Bank of China Limited, China Development Bank, Industrial Bank Co., Ltd., Bank of Communications Co., Ltd., Postal Savings Bank Of China (PSBC), China CITIC Bank International Limited and China Merchants Bank Co., Ltd. are also actively entering the market in recent years and further strengthening the market growth.

Attribute

Details

Base Year

2022

Historical Years

2018–2021

Estimated Year

2023E

Forecast Period

2024F –2028F

Quantitative Units

Revenue in USD Billion and CAGR for 2018-2022 and 2023E- 2028F

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered 

      Type

Provider Type

Interest Rate

Tenure Period

Company 

        

Regional Scope

North, East, North-East, South-Central, North-West, South-West

Key Companies Profiled

ICBC Co., Ltd., Bank of China, China Construction Bank Corporation, Agricultural Bank of China Limited, China Development Bank, Industrial Bank Co., Ltd., Bank of Communications Co., Ltd., Postal Savings Bank Of China (PSBC), China CITIC Bank International Limited and China Merchants Bank Co., Ltd.

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

 Report Scope:

In this report, China Loan Market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

  • China Loan Market, By Type:
    • Secured Loan
    • Unsecured Loan
  • China Loan Market, By Provider Type:
    • Bank
    • Non-Banking Financial Companies
    • Others
  • China Loan Market, By Interest Rate:
    • Fixed
    • Floating
  • China Loan Market, By Tenure Period:
    • Less than 5 Years
    • 5-10 Years
    • 11-20 Years
    • More than 20 Years
  • China Loan Market, By Region:
    • North
    • East
    • North-East
    • South-Central
    • North-West
    • South-West 

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in China Loan Market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

It is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary         

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Voice of Customer Analysis (B2C Market)

4.1.  Sample Size Determination

4.1.1.     Respondent Demographics

4.1.2.     By Gender

4.1.3.     By Age

4.1.4.     By Occupation

4.2.  Brand Awareness

4.3.  Factors Influencing Purchase Decision

4.4.  Sources of Information

4.5.  Customer Satisfaction

4.6.  Challenges Faced After Purchase

5.    China Loan Market Outlook

5.1.  Market Size & Forecast          

5.1.1.     By Value

5.2.  Market Share & Forecast

5.2.1.    By Type Market Share Analysis (Secured Loan and Unsecured Loan)

5.2.2.    By Provider Type Market Share Analysis (Bank, Non-Banking Financial Companies and Others (Fintech Companies))

5.2.3.    By Interest Rate Market Share Analysis (Fixed and Floating)

5.2.4.    By Tenure Period Market Share Analysis (Less than 5 Years, 5-10 Years, 11-20 Years, More than 20 Years)

5.2.5.    By Regional Market Share Analysis

5.2.5.1.         North Market Analysis

5.2.5.2.         East Market Analysis

5.2.5.3.         North-East Market Analysis

5.2.5.4.         South-Central Market Analysis

5.2.5.5.         North-West Market Analysis

5.2.5.6.         South-West Market Analysis

5.2.6.     By Company Market Share Analysis

5.3.  China Loan Market Mapping & Opportunity Assessment

5.3.1.     By Type Market Mapping & Opportunity Assessment

5.3.2.     By Provider Type Market Mapping & Opportunity Assessment

5.3.3.     By Interest Rate Market Mapping & Opportunity Assessment

5.3.4.     By Tenure Period Market Mapping & Opportunity Assessment

5.3.5.     By Regional Market Mapping & Opportunity Assessment

6.    China Secured Loan Market Outlook

6.1.  Market Size & Forecast          

6.1.1.     By Value

6.2.  Market Share & Forecast

6.2.1.     By Product Type Market Share Analysis (Mortgage Loan, Housing Loan, Auto Loan and Others (Gold Loan, Life Insurance Loan etc.))

6.2.2.     By Provider Type Market Share Analysis

6.2.3.     By Interest Rate Market Share Analysis

6.2.4.     By Tenure Period Market Share Analysis

7.    China Unsecured Loan Market Outlook

7.1.  Market Size & Forecast          

7.1.1.     By Value

7.2.  Market Share & Forecast

7.2.1.     By Product Type Market Share Analysis (Personal Loan, Education Loan, Agricultural Loan and Others (Home Improvement Loan, Consumer Durable Loan etc.))

7.2.2.     By Provider Type Market Share Analysis

7.2.3.     By Interest Rate Market Share Analysis

7.2.4.     By Tenure Period Market Share Analysis

8.    Market Dynamics

8.1.  Drivers

8.1.1.     Increasing internet penetration

8.1.2.     Increasing number of young potential loan buyers

8.1.3.       Low interest rates in automotive sector

8.2.  Challenges

8.2.1.     Security concerns

8.2.2.     Surging competition from NBFCs

9.    Impact of COVID-19 on China Loan Market

9.1.  Impact Assessment Model      

9.1.1.     Key Segments Impacted

9.1.2.     Key Regions Impacted

10.  Market Trends & Developments

10.1.              Changing lifestyle

10.2.              Attractive marketing strategies

10.3.              Increasing support of online portals

10.4.              Rising focus towards loan sector by Bank and NBFCs

10.5.              Increasing nuclear families

11.  Porter’s Five Forces Model

11.1.              Competition Landscape

11.2.              Buyer Power

11.3.              Supplier Power

11.4.              Threat of New Entrants

11.5.              Threat of Substitutes

12.  Policy & Regulatory Landscape

13.  China Economic Profile

14.  Competitive Landscape

14.1.              Company Profiles

14.1.1.  ICBC Co., Ltd.

14.1.1.1.      Company Details

14.1.1.2.      Product & Services

14.1.1.3.      Financials (As Reported)

14.1.1.4.      Key market Focus & Geographical Presence

14.1.1.5.      Recent Developments

14.1.1.6.      Key Management Personnel

14.1.2.  Bank of China

14.1.2.1.      Company Details

14.1.2.2.      Product & Services

14.1.2.3.      Financials (As Reported)

14.1.2.4.      Key market Focus & Geographical Presence

14.1.2.5.      Recent Developments

14.1.2.6.      Key Management Personnel

14.1.3.  China Construction Bank Corporation

14.1.3.1.      Company Details

14.1.3.2.      Product & Services

14.1.3.3.      Financials (As Reported)

14.1.3.4.      Key market Focus & Geographical Presence

14.1.3.5.      Recent Developments

14.1.3.6.      Key Management Personnel

14.1.4.  Agricultural Bank of China Limited

14.1.4.1.      Company Details

14.1.4.2.      Product & Services

14.1.4.3.      Financials (As Reported)

14.1.4.4.      Key market Focus & Geographical Presence

14.1.4.5.      Recent Developments

14.1.4.6.      Key Management Personnel

14.1.5.  China Development Bank  

14.1.5.1.      Company Details

14.1.5.2.      Product & Services

14.1.5.3.      Financials (As Reported)

14.1.5.4.      Key market Focus & Geographical Presence

14.1.5.5.      Recent Developments

14.1.5.6.      Key Management Personnel

14.1.6.  Industrial Bank Co., Ltd.

14.1.6.1.      Company Details

14.1.6.2.      Product & Services

14.1.6.3.      Financials (As Reported)

14.1.6.4.      Key market Focus & Geographical Presence

14.1.6.5.      Recent Developments

14.1.6.6.      Key Management Personnel

14.1.7.  Bank of Communications Co., Ltd.

14.1.7.1.      Company Details

14.1.7.2.      Product & Services

14.1.7.3.      Financials (As Reported)

14.1.7.4.      Key market Focus & Geographical Presence

14.1.7.5.      Recent Developments

14.1.7.6.      Key Management Personnel

14.1.8.  Postal Savings Bank Of China (PSBC)

14.1.8.1.      Company Details

14.1.8.2.      Product & Services

14.1.8.3.      Financials (As Reported)

14.1.8.4.      Key market Focus & Geographical Presence

14.1.8.5.      Recent Developments

14.1.8.6.      Key Management Personnel

14.1.9.  China CITIC Bank International Limited

14.1.9.1.      Company Details

14.1.9.2.      Product & Services

14.1.9.3.      Financials (As Reported)

14.1.9.4.      Key market Focus & Geographical Presence

14.1.9.5.      Recent Developments

14.1.9.6.      Key Management Personnel

14.1.10. China Merchants Bank Co., Ltd.

14.1.10.1.    Company Details

14.1.10.2.    Product & Services

14.1.10.3.    Financials (As Reported)

14.1.10.4.    Key market Focus & Geographical Presence

14.1.10.5.    Recent Developments

14.1.10.6.    Key Management Personnel

15.  Strategic Recommendations/Action Plan

15.1.              Key Focus Areas

15.2.              Target Regions

15.3.              Target Type

15.4.              Target Provider Type

15.5.              Target Interest Rate

15.6.              Target Tenure Period

16. About Us & Disclaimer

(Note: The companies list can be customized based on the client requirements.)

Figures and Tables

Frequently asked questions

Frequently asked questions

The key factors driving the growth of China Loan Market are increasing internet penetration, rising preference for loan among young generation and low interest rate.

China lends to developing nations at a much higher pace than Western governments or multilateral organizations do. Debt payments are increasing at a time when these countries can least afford them due to the quick rise in global interest rates.

The general lending interest rate in China was4.3% in 2021 which is almost similar to previous year.

The key players in the G China Loan Market are ICBC Co., Ltd., Bank of China, China Construction Bank Corporation, Agricultural Bank of China Limited, China Development Bank, Industrial Bank Co., Ltd., Bank of Communications Co., Ltd., Postal Savings Bank of China (PSBC), China CITIC Bank International Limited and China Merchants Bank Co., Ltd. etc.

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