Construction of credit system sees no basis in laws and government regulations

At the "Summit symposium for China's regional and enterprise credit system" held on May 24, the attendees, after analyzing the status quo of the credit system in China, unanimously call for the government to issue relative laws and regulations so as to ensure smooth development of the industry.

With the continuous deepening of economic reform, the operation of enterprises is more likely subject to rules of market economy. In China, however, due to the lack of credit concept and environment, "lack of credit" has become an important factor that restricts economic growth.

"Credit is the fundamental base of the market economy. Market economy in good order needs to put up a credit system, which is capable of allocating social resources and rectifies transactions effectively. A complete credit system is basic guarantee for enterprise's normal operation and healthy running of national economy. Without credit, the market will hardly grow larger in scale," says Ji Lin, Deputy Mayor of Beijing Municipality in his speech.

Enterprises including high-tech enterprises, especially medium and small-sized enterprises, are to receive paramount support form the government, for their proportion in the GNP is continuously rising. But the rising enterprises usually lack funds and policy supports that are necessary for their sustainable development. On one hand, banks and local guarantee companies shoulder responsibility to push the growth of enterprises and economic construction; on the other hand they dare not to loan and guarantee for the enterprises due to lack of effective credit management system. Enterprises have demands for loan and financing but are not able to get them; banks and guarantee companies see such demands but dare not to lend.

The root of such problem is lack of effective credit management, which is used to distinguish honest enterprises from dishonest ones, to inspire and support enterprises with good performance, and to warn and get rid of inferior enterprises. In the meantime, the enterprise should actively build and maintain their own credit image so that they gain advantageous positions in market.

The construction of credit system in China still needs government's guidance and laws' restrictions, admits Liu Ping, Head of the Law Department, Policy Research Bureau of the People's Bank.

Governments in all localities have put setting up credit system on their agenda since the initiation of the task in the 3rd session of the 16th congress party of CPC. How to form a credit management mode that fits China's situation has become a subject, for which the government, banks and enterprises have been researching and experimenting. During the symposium, the Huaxia International Business Credit Consulting Co., Ltd demonstrated its self-developed model of "Credit management system for the Zhongguancun Science and Technology Park".

At the symposium, the authorities concerned, units responsible for construction of the system, supporting units and enterprises from different regions give speech centering on direction and modes of credit system's development. At the symposium "forecast the prospect of credit society", representatives from governmental departments, scientific and economic development parks, banks, companies, and enterprises had a heated discussion.

Source: People's Daily Online