(Yicai Global) May 30 -- China Guangfa Bank has followed other Chinese lenders in limiting the use of its credit cards after regulators issued new rules to tighten supervision of card holders to curb investment in non-consumption sectors such as housing, stocks, and gambling.

Credit card funds should not be used in seven fields, including real estate, wealth management, lotteries, and gambling, as well as other non-consumption scenarios or the related transactions will be rejected, the Guangzhou-based bank recently said in a document.

Credit card holders who are allegedly involved in such transactions will face restrictions, such as the lowering or cancellation of the credit card limit, Guangfa Bank added.

Last July, the China Banking and Insurance Regulatory Commission and the People’s Bank of China issued a notice reiterating that credit card funds cannot be used to repay loans or make investments, restricting or banning the use of funds in those areas to prevent credit card funds being used in illegal activities.

Following the notice, large state-owned banks, including Bank of China, China Construction Bank, Agricultural Bank of China, and China Merchants Bank, released statements in the second half of last year establishing rules to limit the use of credit card funds.

Smaller lenders such as Haikou Rural Commercial Bank, Bank of Beijing, and China Everbright Bank, have also begun to rectify their card businesses since the start of the year.

Editors: Shi Yi, Futura Costaglione