A growing number of consumers, especially young urbanites, are adopting more Western habits when it comes to spending money - by favoring credit cards over savings.

A survey of 11,500 people in 18 cities by The Nielsen Company found the credit card market had witnessed a major shift in recent years.

"Today's consumer is clearly not interested in saving for a rainy day, as may have been the case in the past," Bega Ng, director of financial services research with the company, said.

"Consumers have been adopting Western habits and attitudes in almost every way - including saving and spending habits. Consumers in their 20s spend tomorrow's cash to fund today's needs."

The report found consumers aged 18 to 24 were the most avid credit card users.

Although the report did not give the amounts credit card users in each of the 18 cities spent, it cited the example of Xiamen, a coastal city in Fujian Province, where consumers put an average of 50 percent of their monthly incomes into their credit card accounts to indulge in cashless shopping.

Included in the survey for the first time, Xiamen is reported to have a fast growing penetration rate for credit cards, with four out of 10 consumers now owning at least one card.

With more than half of cardholders in Xiamen owning two or more cards, it is catching up with key "tier one" cities, the report said.

The report did not reveal the figures in major cities such as Beijing, Shanghai and Guangzhou.

Last year, the same Nielson survey showed Shanghai had the biggest population of credit card holders, with residents owning 1.8 credit cards on average.

Half of them use credit cards at least once a week, the survey said.

Yunfei, 30, from Beijing, said she spent at least 2,000 yuan a month by credit cards, most of which went on provisions and dining out.

(China Daily November 1, 2007)