Tencent to use social networks for credit-rating services

It seems that people may need to carefully select the friends they make online as Chinese Internet giant Tencent Holdings Ltd is about to launch a consumer credit rating service based on an individual's online social networks.

The Shenzhen-based Tencent said on Friday that it will soon roll out its consumer credit information service in an aim to help financial organizations improve their risk management abilities and enable more people to get easy loans and raise credit awareness, especially among young people.

The Internet giant, which owns popular instant messaging app mobile QQ and WeChat, is a firm believer that birds of a feather flock together. By analyzing the "quality" of people's social networks, combined with each individual's online behavior, such as whether or not to pay bills on time, Tencent said it can provide useful information to help financial institutions know their potential debtors better.