Why China should play its cards right

The push for financial reform in the country will lead to a freer market

As China's consumer spending continues to grow, financial institutions must be given leeway to adjust credit card interest rates to remain competitive, says Ling Hai, MasterCard's division president for China.

With credit card interest rates locked in at 18.25 percent, Ling, who was a guest speaker at the recent Young Leaders' Forum in Beijing, says static rates lead banks to offer credit only to those with the best credit scores, which is a limited number considering the Chinese only began using credit en masse in the past decade.