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Credit highly valued in Shanghai
(Xinhua)
Updated: 2004-06-19 15:13 A presentable credit record
has become an important factor in living a comfortable life or doing business in
this east China metropolis, a place whose per capita Gross Domestic Product
exceeded 5,000 US dollars last year.
By the end of May 2004, credit information on 4.43 million Shanghai-dwellers
had been documented, accounting for 60 percent of all local credit card users.
Meanwhile, credit information on nearly 600,000 enterprises, approximately all
Shanghai-based business entities, were recorded in a database accessible to
public examination.
Shanghai has tried to build a credit-based society in recent years by
conducting systematic examinations on corporate and personal credits.
Criteria in deciding a particular enterprise's credit include corporate
management, capability of fulfilling business contracts,actual contract
fulfillment and public credit rating. Results of the credit examinations are
released by government or notarizationinstitutions.
Business entities are required to provide their credit records while renewing
their operation licenses every year. Those with a bad credit record are subject
to punishment according to law and regulations.
The government-backed Shanghai Credit Information Services Co. Ltd. (SCIS)
was established in 1999 and now becomes the country' largest individual credit
information database.
So far, the instantly updated system has provided some 20,000 credit reports.
The SCIS system is now linked to all Shanghai-based Chinese banks and six
foreign banks, other financial institutions, telecommunication outlets and
public institutions.
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