Credit data to be part of listing approval procedure

Government approval of initial public offerings will take enterprises' credit data into consideration, as part of the nation's broader efforts to build a nationwide social credit system.

Enterprises with past records of untrustworthiness will be strictly examined by the securities regulator when applying for initial public offerings and the issuance of convertible bonds, and the government will pay close attention to the credit information of enterprises after issuing approvals, according to a memorandum of understanding issued last week by the China Securities Regulatory Commission and the National Development and Reform Commission.

The information can be found in the public database established by the NDRC.