China's Credit Market Competition Trend And Bank's Stratagy Analysis

Credit market is the important part of the financial market in China where the indirect finance business is relatively strong which takes a crucial role in resources distribution, economical transportation and financial stabilization. As the financial system reform comes in way, the credit market in China developed from non-competitive stage to competitive phase and will develop to the direction of more marketalization causing deep and regulatory competition. The national economical policy, financial policy, economical and financial system reform will affect the market elements, participants and development of credit market as well the competition strategy of participant. At present, the commercial banks are the most important participants of the domestic credit market in which the four giant state-owned commercial banks holds relatively more shares. At the same time, other commercial banks and foreign banks are growing rapidly, and the non-regulatory credit market is keeping on increasing. The change and development of credit market affect share and portion of every participant forcing them to adopt different competition strategy in which the demand will be the first consideration of fund suppliers. As the market main force, the four giant state-owned commercial banks will also take different competition policy. The article aims to give some advices on the future development trend and the corresponding strategy of the participants in the market.