(by Ameli Berksman)

As soon as 2005 the majority of banks and cards issuers in China will distribute around 77 million credit cards al over the country to expand the market.

Chinese credit card spending will probably reach $271 billion in 2005, analysts say, noting that about 965 of the total will belong to debit cards, while credit cards will enjoy only 4% of the total.

Due to China Union Pay data, about 300,000 merchants in China accepted credit cards at the end of June. Bank of China issued around 18 million debit cards and 5.5 million credit cards in the first quarter of 2004.