China's first private credit-scoring firm starts operation
SHENZHEN - China's first unified, private credit-scoring company started operations Wednesday in the southern city of Shenzhen.
The company, Baihang Credit Scoring, was granted a three-year license by China's central bank in January and registered in Shenzhen in March.
Under the license, it can collect, store and organize personal credit information to provide credit reports, ratings, and anti-fraud services.
"Private credit-scoring companies can supplement the state-run database in providing inclusive financial services," said Dong Ximiao, senior researcher at Chongyang institute for financial studies, Renmin University of China.
With a registered capital of one billion yuan (around $150 million), the company was jointly founded by eight credit firms including Tencent Credit and Alibaba-backed Sesame Credit, as well as the National Internet Finance Association of China.
Analysts believe the platform will help address the lack of records on personal online creditworthiness and improve the national credit-scoring system.
