Shanghai Improves Corporate Credit Rating System
SHANGHAI, January 29 (Xinhua) -- Shanghai, China's leading industrial and business center, plans to beef up moves to improve its newly- established corporate credit rating system.An official of Shanghai municipal government said the city has decided to expand the credit rating scope and improve the credibility of the credit rating results.
The city is now drafting a regulation on corporate credit rating in a bid to remove legal obstacles for a better corporate credit rating system, to encourage commercial banks to introduce differentiated interest rates in line with the credit ratings of firms, and to start trial credit rating on small firms.
A spokesman for the Shanghai branch of the People's Bank of China, China's central bank, said a total of 1,285 enterprises in Shanghai were given credit ratings last year, up 40 percent over the previous year. Each of the companies has outstanding loans worth at least 80 million yuan ( nearly 10 million U.S. dollars).
So far, 3,105 enterprises have been given credit ratings during the past few years, and this has helped commercial banks to reduce bad loans, said the spokesman.
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