The Dream Factory of China

Source :Qianhai Communication Center

A number of services based on the Qianhai credit system, which rates more than 160,000 enterprises in the free trade area according to their credit records, have been put in place to serve the economy.

Enterprises with a good credit rating in the system, under which they have been rated in 10 categories from the highest rating of AAA to the lowest of D, are eligible for expedited services on tax-related matters and fast government approvals, whereas those with lowest rating such as CC or D rating will face tighter scrutiny when applying for policy support.

Official statistics show that the AA-rated enterprises have saved on average 75 percent of their time when dealing with tax matters in Qianhai. The introduction of the credit system has also reduced the daily workload by 26 percent for the Qianhai Tax Service.

Innovative financial products have been created on the basis of the credit system for enterprises with good credit ratings.

The Easy Credit Loan, which has sped up the loan-granting process for small and medium-sized enterprises (SMEs), is one of the financial products based on the credit system.

In partnership with the Qianhai authority, a bank introduces the Easy Credit Loan, which processes loan applications from SMEs with good credit ratings before they submit missing required materials, significantly shortening the loan review period. According to official figures, 1.3 billion yuan (US$198.1 million) in 2,600 loans have been granted to SMEs in Qianhai since its introduction.

Catering to enterprises with high credit ratings, other similar financial products have also been created, providing extra convenience.

The credit system has been built on more than 13 million pieces of credit information collected from over 70 government departments and third-party credit agencies across the city regarding the 160,000 enterprises in Qianhai.

The third phase of Qianhai’s public credit platform that has gone online last year was honored “Top 10 credit applications of China” and one of the “Third batch of best innovation cases of national free trade zones”.

According to a staff member with the enterprise service center of the Qianhai authority, operator of the platform, they conducted investigations on the credit supervision needs of the regulatory authorities, commercial banks and financial institutions when upgrading the platform, which is now a comprehensive credit information platform capable of monitoring public opinion, risk warnings, collaborative supervision, and joint reward and punishment.