The State Council Information Office held a regular policy briefing on April 10, 2024 (Wednesday) at 3:00 PM, where Li Chunlin, the Deputy Director of the National Development and Reform Commission, Ren Yongmei, Director of the Credit Bureau of the People’s Bank of China, and Feng Yan, the head of the Inclusive Finance Department of the Financial Regulatory Authority, introduced the ‘Implementation Plan for Coordinating the Construction of Financing Credit Service Platforms to Improve the Financing Convenience Level of Small and Micro Enterprises’ and answered questions from reporters. Below is the transcript of the Q&A session with Ren Yongmei, Director of the Credit Bureau of the People’s Bank of China:

Reporter from Poster News: In recent years, market-oriented credit institutions in our country have developed rapidly and have played an important role in enhancing the efficiency of credit financing matching. Could you please share the People’s Bank of China’s considerations on cultivating and managing the credit market? Thank you.

Thank you for the question, let me answer it. First, I appreciate your concern and support for the credit market. The construction of our country’s credit system has always adhered to a dual-drive approach of ‘government + market,’ and market-oriented credit institutions are an important part of China’s credit system. In recent years, the People’s Bank of China has vigorously developed a multi-level credit market, covering a wide range of social credit needs. First, we have actively and prudently developed the personal credit market. According to market demands and in conjunction with personal information protection requirements, the People’s Bank has approved two personal credit institutions. In 2023, these institutions provided various credit services such as credit reports, credit scores, and anti-fraud scores, totaling 42 billion times. Second, we nurture and develop the corporate credit market. We guide institutions with data, technology, and markets to enter the corporate credit market, integrating various types of credit information related to enterprises’ registration, business operations, and contract fulfillment. In 2023, 149 corporate credit institutions provided various credit services 22.3 billion times. Third, we have actively promoted the market-oriented transformation of local credit platforms, achieving significant results. Out of 31 provincial local credit platforms, 26 are operated by specially established market-oriented institutions. These institutions comprehensively collect local enterprises’ public credit information and other commercial credit data, achieving deep integration and application of various types of information to provide specialized credit services to financial institutions.

Next, the People’s Bank will follow the Central Committee’s decisions on building a comprehensive social credit system, fully implement the deployment requirements of the ‘Implementation Plan,’ and continue to nurture and manage the credit market. First, further optimize the layout of the credit market. Seize the development opportunities of new productive forces, deepen credit supply-side reforms, support credit institutions in using new technologies like big data and artificial intelligence for product innovation, and provide diversified and differentiated credit information services for inclusive financial development. Second, further promote the sharing and application of various types of credit information. In conjunction with the Development and Reform Commission, we will promote the legal and compliant opening of data to credit institutions by the credit information platform, fully leveraging the multiplier effect of data. Third, continuously strengthen credit supervision. Firmly implement strict supervision requirements, bring all credit activities under lawful regulation, and comprehensively protect the legal rights and information security of information subjects. Thank you.

China News Agency reporter: The “Implementation Plan” proposes that the Financial Credit Information Basic Database should adhere to the positioning of financial infrastructure and provide high-quality specialized credit services for financial institutions. I would like to inquire about the effectiveness of the National Financial Credit Information Basic Database in supporting financing for small and medium-sized enterprises (SMEs). What are the considerations for the next steps? Thank you.

Thank you for the question. I’ll address it. The People’s Bank of China (PBOC) resolutely implements the decisions and arrangements of the Central Committee of the Communist Party of China and the State Council, continuously improves the policy system of financial services for the real economy, and vigorously promotes the construction of the credit system, which has played a positive role in alleviating the difficulties and high costs of financing for small and medium-sized enterprises (SMEs). The PBOC began building the financial credit system in the 1990s. After nearly thirty years of development, the National Financial Credit Information Basic Database has grown from nothing to the largest credit system in the world in terms of coverage and the most comprehensive in terms of credit information. Querying the database for credit reports has become a necessary step in the credit review process of financial institutions, playing a leading role in financial services for the real economy.

Here are some numbers for reference: As of the end of March 2024, the database has been accessed by 6,124 legal entities engaged in credit business, including commercial banks, consumer finance companies, and microloan companies. It has recorded information related to 1.16 billion individuals, 130 million households, and other organizations. In 2023, the database provided query services 5.3 billion times, a significant number indicating the substantial support for financing obtained by many SMEs with good credit history. In the World Bank’s Doing Business assessment, China’s credit information index, with the database as a reference, has ranked among the top globally for several consecutive years.

Furthermore, the PBOC actively promotes the construction of the unified registration and public announcement system for movable property financing and the accounts receivable financing service platform, which has facilitated the financing development of SMEs. As of the end of March 2024, the unified registration and public announcement system for movable property financing has handled 34.455 million registrations and provided 210 million queries. The accounts receivable financing service platform has facilitated 512,000 financings. It is fair to say that significant progress has been made in supporting movable property financing and supply chain finance.

In the next steps, the PBOC will thoroughly implement the spirit of the Central Economic Work Conference and the Central Financial Work Conference, practice the concept of “credit for the people,” continuously improve the database’s functions and services, and provide information support for the five major tasks. First, it will lawfully and comprehensively collect financial credit information, deepen the development and application of credit information, further improve service quality and efficiency, and support financial institutions in establishing a sound and effective mechanism for lending. Second, it will research and promote the shared application of payment fund flow information for SMEs, form a complementary service pattern with credit information, and further enhance the financing convenience for SMEs without credit records. Third, it will further expand the registration scope of the unified registration and public announcement system for movable property financing, and promote the application of the accounts receivable financing service platform, helping SMEs obtain financing using movable property. Thank you!