Jane Chen / Shanghai Daily news

Credit card users will be able to withdraw more cash from ATMs, while paying less commission, thanks to a move by local banks to encourage the bankcard cash advance business.
Starting next year, leading lenders, including China Construction Bank (CCB), China Merchants Bank (CMB), Pudong Development Bank (PDB) and Bank of Shanghai, will be raising the maximum amount of each cash advance to 50 percent of the cards' credit limit, up from the existing 30 percent, today's Shanghai Morning Post reported.
The new 50-percent limit is near the ceiling set by the banking authority, which also rules that the total amount withdrawn cannot exceed 2,000 yuan (US$247) per day per card.
At the same time, service charges are to be cut. 
The fee charged by CMB will be cut by two-thirds to 10 yuan per withdrawal and that of the Bank of Shanghai, starting from 15 yuan for renminbi deals or US$2 for foreign currencies, has been cut to 2 percent of the advanced amount.
Industry insiders regard the new policies as a stimulus to more bankcard business, because cash advances have become a key income-generator of bankcard services in China, though it is not part of mainstream business overseas.
Those taking cash advances account for 15 percent of total card users with CCB, according to an unidentified official with CCB's card center, as cited by today's National Business Daily.
In China, there are many businesses where bankcards cannot be used, resulting in the strong demand for cash advances, he explained.
A CMB official echoed the view, saying "since there is market demand, we will better-serve our customers by increasing the advance limit and reducing the costs."
Though pared, the service charges from cash withdrawal still generate higher income than those from card purchases, another attraction for banks, market analysts pointed out.
The lenders can collect a 1-3 percent fee for each cash advance deal, compared with 1-2 percent for card purchases. They can also charge daily interest of 0.05 percent, equivalent to an annual rate of up to 18 percent, on advances until the money is paid back.