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Credit highly valued in Shanghai 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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