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Every Chinese Has 8 Bank Accounts and between 5 and 6 Debit Cards As of the End of 2019

20 June 2020

[14:34, 6/21/2020] Romo Tjan ST: According to data from the People’s Bank of China (PBOC; central bank of China) as of the end of 2019, China hosted a total of 11,352 billion bank accounts, showing a YoY increase of 12.07% and an acceleration rate of 2.24% compared to the end of the previous year.

As of the end of 2019, there were a total of 68.3687 million bank accounts belonging to agencies and institutions that had been opened in China, which means an increase in YoY (annual) growth of 11.73% and an acceleration of 0.15% compared to the end of 2018.

The total number of private bank accounts reached 11.284 billion, which means a YoY increase of 12.07%, and an acceleration of 2.25% compared to the end of 2018. That also means that every Chinese, including newborns, currently has 8.09 bank accounts . In Indonesia: total bank accounts are 301 million, so there are 1.18 accounts per person, which includes babies.

There are 7.673 billion debit cards and only 746 million dual cards (or debit plus credit cards) in China.

PBOC data shows stable growth in the number of bank cards, with a total issuance of 8.419 billion bank cards in China as of the end of 2019, representing a YoY growth of 10.82%.

Among that number, the number of debit cards (KD) that have been issued reached 7.673 billion, representing a YoY growth of 11.02%. That means every Chinese has 5.5 debit cards.

The number of dual-function cards (credit and debit cards) reached 746 million, YoY growth of 8.78%. So, every Chinese person has 0.54 double card, which means an increase of 8.36% from 2018.

In Indonesia

As of the end of March 2020, according to, the number of credit cards was 17.6 million, or 0.066 credit card per person, which included babies; 9.343 million ATM cards, and 180 million debit cards, or 0.67 combined double card per person, which includes babies. Conclusion: in Indonesia, there are still many opportunities for banks and other financial institutions to issue ATM cards, debut cards, and the like, especially if the economy is moving forward.

In the United States (US)

There are 1.06 billion credit cards; 70% of US people hold at least one credit card; 40% of Americans shop through credit cards; 14% of Americans have at least 10 households / person !!!

Debit cards account for 91.14% of the number of bank cards that have been issued in China.

Chinese people prefer to use cellphones for any payment

In China, especially in urban areas, it is difficult to pay for our transactions via credit cards except in luxury places, which are generally for foreign people and tourists. The majority of Chinese people transact through their cellphones, which include payments to taxi drivers, barbers, roadside traders, using the Alipay or WeChat Pay, which together control 90% of the transaction market via mobile phones there.

This electronic payment method is perfect for our current situation, namely contactless (avoid contact) with Bani notes and coins.

Western banks are afraid of Alipay and WeChat Pay coming to the West

Therefore, banks in other countries, especially the US, are afraid of the arrival of Alipay et al because US banks might later be able to only become business and personal creditors in large numbers. Shareholders and directors of Visa, MasterCard, Amex credit cards et al plus banks and financial institutions that the issuers of credit cards must have started to have difficulty falling asleep for fear of losing commissions of around USD 30 billion (IDR 450 trillion) per year from transactions through credit cards. Last year, Bloomberg broadcast a video entitled “U.S. Banks are terrified of Chinese Payment Apps (US banks are very scared of Chinese Payment Applications)”

At present, checks are still dominant in business payment transactions, salaries etc. The rest is via credit card. Americans are known for their “high standard” lifestyles, but their incomes cannot cover those lifestyle costs. As a result, their lives are like “bigger pegs than poles.”

Therefore, the total number of US citizens’ credit card loans is around USD 1.2 trillion (IDR 18,000 trillion) by the end of 2019. So, every US family owes a credit card debt of around USD 10,000 (IDR 150 million). Because of the pandemic, the number will rise rapidly in 2020 and there will be many defaults or arrears for months because there are around 40 million unemployed people in the US today.
[14:56, 6/21/2020] Romo Tjan ST: The total amount of Foreign Direct Investments in Shanghai, China, exceed that of Indonesia, and the Strategy to attract foreign direct investors
By Tjan Sie Tek, 15 June 2020

The Shanghai Municipal Trade Commission reports that 738 multinational corporation regional headquarters have been established in Shanghai City by the end of 2020.

In addition, 468 foreign research and development (R&D) centers, which include that of Microsoft, have been established there as of the same date.

All of these investments totaled USD 263 billion as of the end of April 2020. The total amounts of FDI in China as of the end of 2016, 2017 and 2019 were USD 1,354 trillion, USD 1,458 trillion and USD 1,637 trillion, excluding FDI stock in Hong Kong SAR and Macao SAR, which are special government areas of China.

Despite the pandemic, foreign capital flows to Shanghai rose 4.1 percent year on year (yearly) to around USD 6.46 billion in the first four months (or January-April) 2020, officials at the Singapore-Shanghai Economic Cooperation Roundtable Conference on June 1, 2020.

In comparison, FDI to Indonesia amounted to USD 6.4 billion, the lowest figure for the past 1.5 years, during January-March 2020, down 9.2% YoY (; UNCTAD World Investment Report 2019).

A total of 15 MNC regional headquarters and seven new foreign-funded R&D centers were established in Shanghai in the January-April 2020 period. The city is targeting the establishment of 40 MNC regional headquarters and 15 new R&D centers for 2020 ( , 10 March 2020)

Chinese Government Subsidies for Foreign R&D Centers

The Chinese government subsidizes foreign R&D centers established throughout China, which include Hong Kong, Macau and Taiwan, with various tax breaks and steps. One goal: that the Chinese people can become researchers and developers of world-class products and services with a salary of USD 100,000 and above per person per year.

Therefore, they award many facilities to these investments if they comply with applicable standards (report on “China technology growth spurs tax deductions and incentives for expats working in the R&D field”).

The Shanghai Government’s aggressiveness in attracting FDI, e.g., TESLA electric car factory.

The Shanghai government is known to be very aggressive. For example, they succeeded in attracting TESLA, the world’s largest electric car manufacturer from the US, to invest a total of USD 5 billion: on October 17, 2018, the Shanghai Government sold industrial land use rights at only around USD 160 million, covering 86.4885 hectares (864,885 m2) for 50 years.

That price is a 50% discount from the market price of the surrounding land. The money is also the result of initial loans from Chinese banks worth about USD 350 million in 2018!!!

So, Tesla is “totally funded” by the Chinese central government and the Shanghai Regional Government because Tesla’s electric cars are the best in the world to date and the Chinese central government has targeted that by 2025, 25% (up from 20%), or between 6 and 7 million units, of all cars produced in China (around 27-28 million per year), must be electric cars.

In addition, giant banks owned by the central government of China: ICBC, CCB and ABC, and that owned by the Shanghai Regional Government: Shanghai Pudong Development Bank (SPDB) provide loans with “special” interest rates of up to USD 1.61 billion (IDR 24 trillion), with 80% of them collateral and the rest without collateral and is a credit that can be rolled over and over again.

The interest rate for the secured loan is around 4.24% per year, or 0.76% below the bank interest rate for prime customers in China which is around 5% per year in 2019 ( “Tesla gets preferential rates on USD 1.61 billion of loans from Chinese banks …. “).

The Tesla plant in Shanghai is 100% foreign investment company and belongs to Tesla Motors Hong Kong, a subsidiary of Tesla Corp. Now it has begun production.

Tjan Sie Tek
A former licensed stock market analyst and investment advisor with 20+ years experience with M.Sc. in Finance from Leicester University; now a Chinese, US and Indonesian macroeconomic and financial analyst, CEO of Center for New Indonesia (CEFNI).


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