HSBC Pulling Back From China Credit Card Business

HSBC is retreating from its credit card business in China eight years after its launch, as the lender struggled to expand and turn the venture profitable in the world's second-largest economy, sources with knowledge of the matter told Reuters reporters Selena Li and Engen Tham.

The planned closure reportedly comes after unsuccessful attempts to sell the business. I Photo: Wikimedia Commons

The Asia-focused bank has stopped issuing new cards and is working towards winding down the service for most onshore Chinese customers, three sources with direct knowledge of the matter said.

Two of the sources noted that the planned closure comes after unsuccessful attempts to sell the business.

The bank, which is still finalizing its plans, may continue servicing credit cards for a small segment of "high-end" clients, according to one of the sources and a separate source familiar with the matter.

The bank's "standalone" credit card clients—those who do not use HSBC banking services in China—will not have their cards renewed upon expiration, one source added, noting that such clients account for a large portion of the business in the country.