GE to launch credit card in China

GE is teaming up with Wal-Mart which is expanding in China

The world's second biggest company, General Electric (GE) is set to take its first step into consumer credit in China - by launching a credit card.

The Visa card will be issued in southern China, in partnership with Wal-Mart and China Development Bank.

Beijing has eased restrictions on credit cards - leading to banks and card-issuing firms expanding in China to cash in on the consumer credit boom.

In September, Wal-Mart issued its first card in China with HSBC.

The cards will feature logos of both GE and Wal-Mart.

A spokesman for the retail giant confirmed the partnership with GE's financial arm, GE Money and said the cards would act as a marketing tool as well as a customer service.

Expansion plans

Last month, Wal-Mart said it was investing $1bn (£540m) in a deal to become China's biggest network of hypermarkets.

Wal-Mart opened its first Chinese store in 1996 and recently revealed plans to hire a further 150,000 workers in the country.

Current estimates suggest fewer than 5% of people in China own a credit card.