Low revolving credit card use, bad debt and low interchange rates all present challenges to issuers hoping to establish themselves in the rapidly growing Chinese card market, according to a report from the Boston market research firm Celent.

Celent, a unit of the Oliver Wyman subsidiary of Marsh & McLennan Cos. in New York, estimated in the report released last week that Chinese banks have issued 38 million cards since 2003 and that the potential market could exceed 200 million consumers next year.

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