China approves third firm on personal credit reporting

BEIJING, Nov. 11 (Xinhua) — China’s central bank on Monday licensed another credit-scoring company to engage in personal credit reporting.
Qiantang Credit Co., Ltd. is the third company in the country that has been permitted to conduct the data-intensive business.
Qiantang Credit, with registered capital of 1 billion yuan (about 139.3 million U.S. dollars), will provide personal credit evaluation services to financial institutions and individuals.
In 2018, China’s first market-oriented personal credit-scoring firm, Baihang Credit, was approved for operations, followed by Pudao Credit which was greenlighted in December 2020.
Credit-scoring companies on personal credit reporting analyze and judge an individual’s credit status based on non-borrowing information, so they must have stable and abundant data resources and possess effective data processing and handling technologies, analysts say.
China started implementing regulations on credit reporting business management in 2022. The regulations clarify the boundaries of personal credit information and standardize the entire process of its collection, processing, and provision.
Qiantang Credit says it will carry out personal credit reporting services strictly in accordance with the law, so that the data security and privacy are well protected. ■