The Chinese consumer market is expected to exceed USD$4.2 trillion in scope within the next several years according to a report from consulting firm McKinsey & Company.
McKinsey forecasts that by the end of 2025 China’s consumer finance market will expand to around 28 trillion yuan (approx. USD$4.21 trillion), amidst a push from the Chinese government for an increase in domestic consumption.
“The next five years will be a critical transitional period for China’s consumer finance market, with banks, licensed consumer finance companies and fintech companies all entering the fray,” said Qu Xiangjun (曲向军), head of McKinsey China’s financial institutions consulting business, to state-owned media.
“[This] will put downwards pressure on profits, and reshape the market in a broad environment of intensifying competition.”