In China, if you spend US$184 on your credit card you can now get a virtual dragon. For US$147, you get a virtual horse.

In what may be the first of its kind, a social network has linked up with a bank’s loyalty program: Chinese
social network Kaixin001.com and China Merchants Bank this week announced the Kaixin Credit Card (Happy Credit Card).

For those not aware of the growth of virtual currencies in China, they have become a shadow economy important enough to attract the attention of China’s financial regulators. As I have written previously, virtual items – avatar outfits, animals, decorations etc – are a major source of revenue for social networks in China and Japan.

Instead of airmiles or points for a hotel visit, cardholders get one Kaixin credit for every RMB20 (Roughly US$2) spent on the card.  Until July 31 2011, card owners can exchange their Kaixin credits for Kaixin coins at an exchange rate of 50 Kaixin credits for eight Kaixin coins. (Eight is a lucky number in China)

Kaixin coins can be used to buy a dragon (12 coins or US$184/1250RMB spent on the credit card); a horse (8 coins or US$147/1,000 RMB spent on credit card) or hire a garden keeper in Happy Farm for a month (5 Kaixin coins per month) or a range of other small gifts that cost 2 to 3 Kaixin coins.

As part of the launch, China Merchants Bank has bombarded current cardholders with emails to encourage them to become fans of China Merchants Bank on Kaixin001.com, offering Kaixin game cards to people who register as a fan from August 17 until the end of the year.

Currently, China Merchants Bank has 397,219 fans.

h/t to Xie Qing.