China's Latest Debt Worry: An Overdraft Crisis

China Credit Card Mall

More than 700 million Chinese people use bank cards. At the end of 2010, there were 2.6 billion bank cards in circulation.

Now the President of the one company that handles their transaction fees is warning that credit card overdrafts will grow by 50%, reports Shanghai Daily.

The company is called Union Pay Co. and its President Xu Luode told a Shanghai financial forum that in 2011 credit card overdrafts would rise to 600 billion yuan (US$93 billion), up from last year’s 400 billion yuan figure.

Add that to the growing list of Chinese debt concerns- railway, local governments

But everything will be fine, we’re sure.

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