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Xiaomi, JD.com-backed firm on track to become China’s second personal credit ratings agency
- China’s central bank has accepted the application of Pudao Credit to operate another personal credit ratings firm in the world’s second-largest economy
- Beijing Financial Holdings Group, a company owned by the Beijing local government, will have a 35 per cent controlling stake in Pudao Credit
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China’s central bank is on track to set up the country’s second personal credit ratings agency, one that is backed by Xiaomi Corp, JD.com’s financial technology business and artificial intelligence unicorn Megvii.
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The People‘s Bank of China (PBOC) said in a statement on December 4 that it had accepted the application of Pudao Credit Rating Co for such a licence and initiated a seven-day period to solicit public opinion, which concludes on December 10.
Beijing Financial Holdings Group, a company owned by the Beijing local government, will have a 35 per cent controlling stake in Pudao Credit, while JD.com fintech unit JD Digits will own 25 per cent, according to the PBOC statement. Xiaomi and Megvii will each have a 17.5 per cent stake.
It is unclear when Pudao Credit will receive its licence from the PBOC.
“Based on the issuance of the first [personal credit ratings] licence, I expect this second one to be approved in one to three months,” said Wang Pengbo, a senior finance analyst based in Beijing.
In February 2018, Baihang Credit became the first personal credit information company licensed to operate in the world’s second-largest economy. Baihang Credit, which is backed by several companies including Alibaba Group Holding affiliate Ant Group and Tencent Holdings, obtained the licence nearly two months after the PBOC accepted its application. Alibaba is the parent company of the South China Morning Post.
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