Credit Rating Method

Author: Wu Runyang
Publisher:
Publish Date: 2005-04-01
Features: To build a comprehensive social credit system, the following actions are urgently needed: First, draft the "Social Credit Information Law" to provide a basic legal basis for commercial social credit investigation agencies to collect, store, evaluate, and provide services for enterprise and individual credit information in the socialist market economy, addressing the current lack of legal foundation in establishing the social credit system. Second, comprehensively utilize administrative, legal, and commercial means, relying on advanced information technology, to gradually collect and process credit records and other business behavior data of enterprises and individuals scattered across different departments such as industry and commerce, taxation, and banking, establishing a nationwide credit investigation system and a networked credit database. Then, gradually expand the content of the credit database, transitioning from purely commercial credit data to include records left in public security, procuratorate, and court institutions. Third, establish a strict credit supervision and reward-and-punishment system covering the entire society. China can learn from the common practices of developed countries, granting higher bank credit limits, more favorable savings and loan interest rates, and preferential rights in stock and corporate bond issuance to enterprises and individuals with high credit ratings. Fourth, strictly enforce relevant regulations to standardize the provision of credit information by government departments, banks, industrial and commercial enterprises, and individuals, imposing corresponding penalties on intentional misinformation; regulate credit intermediaries to prevent the provision of false information; and, while establishing the social credit system, also protect the trade secrets of enterprises and the privacy rights of individuals.
Since 1998, deflation has led to market demand being less than the economy's supply capacity, resulting in product surpluses across industries. To address this issue, initiating investment and boosting domestic consumption is crucial. Currently, special emphasis should be placed on the development of small and medium-sized enterprises (SMEs). In terms of investment, a significant portion is concentrated in SMEs. In terms of consumption, as the general working class targets durable goods and housing, they often cannot afford outright payment, so financial institutions should actively provide consumer loans, credit cards, and other credit payment tools to support consumption. However, the establishment of a credit system and the reform of the financial system are both imperative, whether for corporate loans or consumer loans. A well-established credit record for individuals and enterprises enhances transparency and improves the financing capacity of SMEs. SMEs are labor-intensive and can provide more job opportunities, which is beneficial for the current reform of state-owned enterprises. At the same time, SMEs are highly competitive. Since China's market competition after joining the WTO relies not on "aircraft carriers" but on "ants," the goal is to achieve high rates of capital return, rapid capital circulation, accelerated optimization and upgrading of industrial and consumption structures, and sustained stable economic development. To reach this goal, the establishment of a social credit system is of great importance.
Under the current circumstances, we publish this series of "Hui Cheng Credit Management Books" with the hope of contributing to the construction of China's social credit system and dedicating it to readers who share an interest in this cause. In terms of content, this series covers knowledge from various branches of the credit profession and will be the most systematic set of professional books in China. It is particularly suitable for readers including: civil servants in government economic management departments, faculty and students in economics and management majors, credit management personnel in various types of enterprises, financial and sales managers, employees of credit investigation enterprises, management consultants, credit guarantee business personnel, employees of commercial banks, and staff in various insurance industries. Let us together welcome the arrival of China's credit economy era.