China’s economic slowdown fuels credit card defaults
AgenciesChina is facing a surge in credit card delinquencies from a seemingly unlikely source: middle-aged borrowers who otherwise look like model citizens, with university educati...
China is grappling with a surge in credit card defaults, a trend fueled by middle-aged borrowers who typically appear to be model citizens with university degrees and stable public-sector jobs. This shift marks a stark contrast to the United States, where credit card defaults have historically been linked to younger individuals.
The latest data reveals a 50% increase in non-performing loan values in the third quarter of 2026, with credit card arrears comprising 35.2% of this amount. Most delinquents are between 40 and 50 years old, driven by factors such as salary cuts or layoffs, which compel them to prioritize mortgage repayments and family expenses over credit card bills.
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