China's fledgling credit reporting industry stalls

China's fledgling credit reporting industry stalls

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China appears to have a long way to go before it can fully achieve its ambition to develop a third-party credit-reporting industry, according to Caixin.  That is despite the People's Bank of China handpicking eight Chinese companies for a pilot project more than two years ago. In 2015, the central bank gave the green light to open up the credit reporting industry to companies. The handpicked companies picked included Sesame Credit Management Co., a subsidiary of Ant Financial Services Group; Tencent Credit Services, and Shenzhen Qianhai Credit Service Co. Ltd. The PBOC originally gave the companies six months from January that year to prepare, saying it would decide on whether to grant a license based on how much the applicant company achieved. The central bank assessed preparations of the companies, but to date not a single license has been issued.