How To Run A Credit Reporting Agency In China

Agencies, Authorities, Bureaus, Compliances, Governance, Read, Registrations, Regulations

The People’s Bank of China issued a Draft for comments on “Measures for the Administration of Credit Investigation Services“. It is intended to regulate the credit investigation business and related activities, and promote the healthy development of the credit investigation industry. This is formulated in accordance with the “Civil Code of the People’s Republic of…

China’s Administrative Measures for Credit Investigation And Regulations on the Administration of Credit Investigation Industry

Authorities, Read, Regulations

On January 11, 2021 the People’s Bank of China announced the “Administrative Measures for Credit Investigation (Draft for Comment)”. This is another heavy new regulation that the credit reporting industry will usher in after the 2013 “Regulations on the Administration of Credit Investigation Industry” and the “Administrative Measures for Credit Investigation Institutions”. The “Measures” have…

From Alibaba as “Amazon of China” to Amazon as “Alibaba of the USA”

Advisors, Investors, Read

“Innovative market leaders can excel in emerging countries”, writes a clever investor in his “Christmas letter”, who may be quoted here, but wants to remain anonymous, since his letter is only addressed to his “investors and serves to maintain contact with a few other acquaintances / friends”: “When it comes to innovation, the big US…

Toward A Reputation State: A Comprehensive View of China’s Social Credit System Project

Governance, Read

China’s Social Credit System Project (the “SCSP”) is one of the most misunderstood recent developments in China’s law and policy. In the book “Social Credit Rating“, Xin Dai offers a comprehensive conceptual thesis that explains the SCSP as the Chinese government’s multi-faceted strategy to use reputation in law and governance. The SCSP envisions that reputation…

Reflections on China’s Credit Reporting Practice

Read, Systems

Prof. Wu Jingmei discusses in her contribution to the book “Social Credit Rating” the current situation, logic and development trends of China’s credit reporting system. China’s credit reporting system is composed of financial, commercial and administrative credit reporting, which were set up according to its resource allocation system divided into financial sector, non-financial sector, and…

The Social Credit System and China’s Rule of Law

Governance, Read

In 2014, the People’s Republic of China’s (PRC’s) central government formally declared the construction of a Social Credit System (SCS) a national task. Meanwhile, government-designated localities and companies are experimenting with scoring systems for businesses, citizens and the administration. “The government’s initiative introduces mechanisms for a massive aggregation and exchange of data about ‘credit subjects’,…

An Economic Approach to China’s Social Credit System

Methodologies, Models, Read

In an effort to increase trustworthiness across society, the Chinese government has been building its Social Credit System since 2014. This system targets all natural and legal persons in China and consists of four major elements: a central data platform, a rating system for commercial creditworthiness, a propaganda system for educative purposes and a publicly…

China’s Social Credit System

Experts, Histories, Systems, Tools

The Social Credit System (SCS) is perhaps the most prominent manifestation of the Chinese government’s intention to reinforce legal, regulatory and policy processes through the application of information technology, writes Rogier Creemers, Van Vollenhoven Institute at Leiden University. Yet its organizational specifics have not yet received academic scrutiny. He published a paper which identifies the…

Little Risk Of Systemic Contagion From The Evergrande Crisis

Reports

“China’s ghost cities” have become a familiar trope in Western media. Beyond Kangbashi, with its other-worldly stadiums and museums, there is Chengchong in southern Yunnan province; Binhai, outside the central city of Tianjin; and Tianducheng, in the Hangzhou suburbs, with its very own replica of the Eiffel Tower. China’s ghost cities are in the news again because of the financial travails…

ancient architecture archway building

Clever Commission From the City of Münster in Westphalia

Agencies, Analysts, Authorities, Experts

An automated safety net for municipal investments has not existed since 2017. If municipalities do not want to set up extensive bond research departments themselves, in which financial analysts examine thousands of qualitative data and annual financial statements from issuers of financial products, the municipalities depend on the independent judgments of reliable credit rating agencies…

The Dynamics of Free Trade and FDI during the Globalization Era

Histories, Read

Multilateralism waned, but the process of trade liberalization continued. This blog article is a short excerpt from Country Risk – The Bane of Foreign Investors (Springer, 2020) by Norbert Gaillard. International trade went through unexpected and paradoxical changes during the globalization era (1991–2016). Multilateralism waned, but the process of trade liberalization continued. For instance, the…

Internet Oligopoly is Hindering Online Retail Growth

News

China strengthens small and medium-sized enterprises. On 5 March 2021, the Government of China (rated A1 stable by Moody’s) said it will encourage internet companies to reduce commissions to an appropriate level for merchants that transact on these internet companies’ platforms. “The government did not specify the level of potential commission reduction in its directive,”…

Re-Innovate a Social System

Book

In the book with the rather harmless title „Social Credit Rating“, Springer Verlag, Hrsg. Oliver Everling, all financial, societal and political issues of today can be found. Since 2014, the KP (communist party) of PRC (China), is developing a so called, Social Credit System (SCS). The official goal is to include social (good) behavior in…

man in white dress shirt sitting on chair

Religious Affiliation and Politics

Read

Religious ties are a major cause of conflict. For example, while the leadership in the People’s Republic of China has hardly any institutional ties to religions, almost all presidents in the USA are religious. This results in conflicts of interest that can have different meanings depending on the religious affiliation. A look at past presidents’…

Berechtigungsscheine As An Emerging New Asset Class in Germany

Read

Eligibility certificates (Berechtigungsscheine) are short of becoming a new asset class in Germany. Since January 2021, the Federal Government of the Federal Republic of Germany has been distributing authorization certificates intended for the purchase of goods with practically no prior notice. Within a few days, markets were created where the certificates of entitlement are now…

symbol of european union on banknote

Sigmar Gabriel Explains to Moody’s the Euro as a Question of Sovereignty and Security

Experts

Moody’s Credit Trends 2021 Germany & Austria “As last year has shown, a global pandemic can turn everything upside down,” says Jens Schmidt-Bürgel in an interview with Sigmar Gabriel and starts talking about the greatest challenges facing the new administration in the USA. Sigmar Gabriel is the keynote speaker at Moody’s conference “Credit Trends 2021…

crop male player with game money playing monopoly

BaFin Corrects False Warning Against A Real Company And Warns Against Fake Business of a Doppelganger

Authorities, Read

Following its consumer report of December 3, 2020, the Federal Financial Supervisory Authority (BaFin) now makes it clear on January 18, 2021 that the activity as “asset manager” is not used by HTG Consulting GmbH, but by unknown third parties. HTG Consulting GmbH became victim of identity theft. On December 3, 2020, BaFin reported, among…

man in black jacket sitting beside window

Western Countries Still Lack Systems To Fight Identity Theft

Authorities, Crime, Read, Systems

The German Federal Financial Supervisory Authority (BaFin) published an urgent announcement “21.12.2020 | Topic Consumer protection: Warning regarding the website ‘otc-markets.eu’”. Regardless of the warning, the website is still active: BaFin advises that the website “otc-markets.eu” does not belong to the US company OTC Markets Group Inc. “This is a case of identity theft committed…

Why Art Rating Criteria Need To Be Repaired

Agencies, Criteria, Read, Repairs, Reports

The Artprice Report, covering 20 years of Contemporary Art auction history, is a basis for understanding why evidence-based “art rating” is more important and urgent today than ever before. The complexity and global nature of the art market has never been greater. In the last two decades, decisive impetus came from China. “In 20 years,”…

S&P And Moody’s Are Losing Market Share in the EU

Agencies, Certifications, Read, Registrations, Regulations

For the first time, the European Securities and Markets Authority ESMA has reported a decline in market shares in Europe for both of the major US rating agencies. The authority thus discloses a remarkable development. Never before have the two market leaders, who have been issuing their credit ratings worldwide according to recognized standards and…

Social Credit Rating

Books

Oliver Everling (editor): Social Credit Rating, Wiesbaden 2020, Springer Gabler Verlag, eBook ISBN 978-3-658-29653-7, Softcover ISBN 978-3-658-29652-0. Social credit ratings are the result of social credit systems. These include online rating or scoring systems which are making use of a variety of databases, using, for example, the creditworthiness, criminal record and social behavior of individuals…

A Study on the Typological Regulation of the Dishonesty Punishment – also on the Rule Design of the Social Credit Law

Governance, Read

The punishment of dishonesty is an important content of the credit rule of law, writes Wang Wei in the book “Social Credit Rating“. “The punishment of dishonesty is not a precise legal concept,” he says, “so we must use legal technology to analyze and define it.” In the market punishment, industrial punishment, social punishment, administrative…

Recognized Credit Rating Agencies

Agencies, Certifications, Read, Registrations, Regulations

There are almost 200 countries in the world. Many countries do not have specific regulations on rating activities, but most industrialized countries do have laws on Credit Rating Agencies (CRAs). Credit Rating Agencies are required to get registered, licensed, recognized or certified. Until the Credit Rating Agency Reform Act of 2006 was introduced in the…

Domestic and Foreign Credit Theory Studies and Standardization Practices

Books

Oliver Everling, Yan Yin and Yusi Ding (Associate Chief Editor, http://www.cnis.gov.cn/): Domestic and Foreign Credit Theory Studies and Standardization Practices, Technical Book Series on Standardization of Social Credit in China, Chen, Yuzhong, und Qian, Yumin (Chief Editor), compiled by National Technical Working Group on Credit of Standardization Administration of China (http://www.sac.gov.cn/), China Metrology Publishing House, Beijing,…