Will The Registration Threshold Be Increased? China'S Credit Rating Industry Is On The Way.

With the increase of registration threshold, the number of small companies registered with 2 million yuan registered by several partners has grown to a large company with more than 200 employees and a registered capital of 10 million yuan in 10 years. Cao Xiaoning, President of Huaxia International Business Consulting Co. Ltd., knows that it is not easy.

He saw that the company's prospects were getting better and better, but he had trouble.

This trouble comes from the "Credit Management Ordinance" (Draft), which is ready to be issued at the moment.

It is learnt that the regulations were drawn up by the people's Bank of China and led by 16 ministries and commissions.

The main content is to regulate the relevant issues such as "who will collect credit, how to credit, who will supervise".

At present, the regulations are in the process of extensive investigation and solicitation.

The industry generally welcomes the introduction of the regulations.

Most people believe that there is not a law or regulation providing direct basis for credit reporting activities in China's current legal system, so that agencies that collect credit information can not be trusted in the collection and disclosure of credit information.

This regulation will fill this gap.

However, the high threshold set by the regulations has caused an uproar in the industry.

It is said that the regulations stipulate that the registered capital of a company engaged in enterprise credit investigation shall not be less than 50 million yuan, and the registered capital of a company engaging in natural person's credit investigation business shall not be less than 100 million yuan.

The regulations stipulate that the qualification management of senior managers of credit bureaus shall be carried out, and natural persons shall not engage in credit reporting activities.

Despite the fact that the regulations have not yet been formally promulgated, the draft still stirs up a lot of things: Recently, many private credit intermediary companies have taken the initiative to recruit and increase their registration fees; some have built up their own databases and credit rating systems on a large scale, and some have been in close contact with the largest user commercial banks of credit products, holding various seminars, engaging in public welfare activities, increasing the popularity index, and exploring cooperation channels.

Recently, Cao Xiaoning submitted his amendment to the people's Bank of China.

He believes that some provisions in the credit administration regulations violate the operation rules of the enterprise credit reporting industry. Once promulgated, it is likely to kill the industry and directly affect the security of China's market pactions and international trade.

He said that over the past decade, more than 99% of Credit Companies were private enterprises, foreign-funded enterprises or joint ventures with various components. At present, the sales volume of the national credit information market is less than 100 million yuan, which is far from the scale of the large scale credit reporting companies that international revenues last year are often 1 billion dollars.

It is unreasonable for the government to deprive existing enterprises of their managerial and property rights by raising the "registration threshold".

Moreover, such a high threshold is absolutely unnecessary and a waste of resources.

He said that "to ensure that credit institutions have sufficient operational capacity", forcing enterprises to increase their registered capital not only violates the basic principles of market allocation of resources, but also creates monopolistic operations, and suppresses private investment, which is unfavorable to the early development of the credit market.

"At present, no country in the world has set a threshold for the credit reporting industry," he said.

In China, there are several wholly foreign-owned companies or Sino foreign joint ventures engaged in credit reporting business, and the amount of registered capital is not high.

According to the high threshold clause, their qualification will be abolished.

This will affect the international image of our country.

He also believes that the high threshold is against the monopoly principle.

The state is breaking industry monopolies (such as telecommunications, civil aviation, electricity and so on) through splitting up and restructuring, while China's credit rating industry has successfully developed for more than ten years under the conditions of market competition, but suddenly it has to abolish market competition by setting up a "threshold for registration", so that people can not understand the monopoly of industry.

As for the view that "mature market economy countries are often monopolizing the credit market by several credit bureaus", Cao Xiaoning said that the enterprise credit reporting industry has a history of more than 170 years abroad. This monopoly is the result of free competition, rather than the government's elimination of most enterprises and the establishment of a small number of enterprises through legal provisions.

Even today, the 3 monopolistic US consumer credit data market, there are still hundreds of consumer credit reporting companies in the "pickup".

The government should rule the rules or manage the scale. Cao Xiaoning said that the amount of capital needed by the credit companies should be decided by the enterprises according to the needs of market development.

For example, the overall share of China's enterprise credit consulting market is less than 80 million yuan. If the state stipulates that the enterprises whose registered capital is less than 50 million yuan will lose their qualification, then the existing three company credit reporting companies in China will have to increase their capital to 150 million yuan. What is this waste of resources?

As a matter of fact, the largest two private credit firms in China, the initial registered capital of Huaxia Credit and Xinhua letter are only several million yuan. After 10 years of development, they have become well-known credit reporting companies both at home and abroad.

Their existing registered capital is sufficient to meet their operational needs.

Cao Xiaoning suggested that when developing credit reporting industry, the Chinese government should encourage private investment instead of setting up excessive entry barriers.

Management does not depend on raising the threshold of registered capital, but in formulating management rules.

Liu Jiarui, executive vice president of Huaxia Credit, said that the high threshold is simply impossible for large enterprises.

Large enterprises are not unable to afford the money, but feel that there is no need, because the market has not developed to that point.

The threshold should be determined by the market rather than the government.

It is reported that the world's largest and oldest corporate credit firm, dun Bai, has entered China, and its registered capital has not reached 50 million yuan.