HSBC Holdings Plc, Europe's largest bank, said its credit card unit with Chinese partner Bank of Communications Ltd may break even earlier than expected, after an alliance with Wal-Mart Stores Inc and other companies that's designed to boost users.

"The credit card business may break even by the end of our third operation year," Ron Logan, head of the Pacific Credit Card Center, said at a media conference in Shanghai on Saturday. The Bank of Communications and shareholder HSBC started offering dual-currency cards in China in July 2005. The Pacific Credit Card Center has issued more than 1.1 million cards to date and "will surely issue more than 1 million in the second year of operation," Logan said.

HSBC, Citigroup and American Express Co are banking on dual-currency cards to build brand awareness and customer bases in China, an economy with US$1.9 trillion household savings, according to Bloomberg News. Citigroup and partner Shanghai Pudong Development Bank Co had issued 337,400 dual-currency credit cards as of June 30.

"We are seeking strong partners in different sectors to support our card business," Logan said.

The Bank of Communications and HSBC have said they plan to issue two credit cards this week in cooperation with Wal-Mart, the world's largest retailer, and Suning Appliance Co, China's second-largest home appliance retailer.

Editor: Yan