Giving a small loan to Chinese people in 2nd tier cities may be understood as a challenge. Han people used to be closed behind a wall protecting them from very militant Mongolian hords, as they were a problem since 10th century (we can see their movement up to Europe by current Hungary and Finland). This thread was coming from North and West (today parts of Russia, Inner Mongolia in China, Mongolia, Kazakhstan, Tajikistan...). On the east they were meeting Japanese people, that overtake Chinese alphabet and culture. On South East they were facing a sea and sea pirates (today Phillipines). On South a strong nation of India did influence China in religion, but until this years there is not a good relationship between China and India (prove of that is the coalition between Pakistan and China, enemy of my enemy is my friend principle). On south they also met nations of Vietnam, Myanmar and Laos. They did strongly influence this culture and use it as depending states. Only difference was Thailand, as their independence was kept for long time even by paying a big tributes.
In long Han history we can see the discovery of money and banking system. Export of certain products through Silk road. But normal people were closed and even in last centuries rules by foreign power.
Last years (since 2004) we can see the first time an average person being able purchase products he doesn't necesarry needs and enjoy his life. Social stability allows people to forget about everyday saving up to maximum. Even Chinese people are very careful about their money, new generation would like to enjoy them. And this is maybe a first time in their history.
Therefore any consumer finance is facing two challenges:
a) big demand, as having a loan is not considered as something bad anymore
b) growing NPL, as the culture of the loan a payback is still not introduced and understood (especially by credit cards, where loan appears to be never paid back).
No comments:
Post a Comment