China UnionPay bank card spending hits record high during golden week

Chinese holiday makers traveling throughout the country during the seven-day Labor Day holiday spent 1 billion yuan (121 million US dollars) on deals paid with the help of bank cards, a record high and a rise of 346 percent over a year earlier, according to official figures.

The figure involves 4.97 million deals during the week-long holiday, up 216 percent year on year, said China UnionPay Co. (CUP), a shareholding financial institution established through capital contributions by over 80 domestic financial institutions in 2002.

Bank cards carrying a UnionPay logo, including those issued by the country's major banks, may be used for payment or withdrawing cash from ATMs owned by other member banks in and outside places of residence within China, including Hong Kong.

Chinese residents used to carry large sums of cash going shopping in as late as 1990s due to a lack of bank card services. When the cards were first issued, they could only be used to withdraw cash from the ATMs owned by the issuing bank.

During the seven-day holiday ending Friday, travelers from the Chinese mainland spent 75 million yuan (9.1 million US dollars) inabout 40,000 deals in Hong Kong using the bank cards, China UnionPay said.

An average payment for shopping by the mainland travelers in one deal stands at 3,028 yuan (369 US dollars) during holiday, much more than the average monthly disposable income of an urban resident on the Chinese mainland, or 2,639 yuan (321 US dollars).

UnionPay card spending by Chinese mainland visitors in Hong Kong had reached 54 million HK dollars (6.94 million US dollars) in 21 days between Jan. 18- Feb. 7, 2004, when Hong Kong shops began to accept payments by UnionPay Card.

China has been encouraging residents to travel to Hong Kong as part of its moves to spur local consumption and boost local economy. Enditem