FINANCE

Exclusive: Shanghai SOE to Lead New Personal Credit Reporting Firm

Published: Jul. 2, 2025 7:17 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

The new personal credit reporting company will be the fourth in China, and the first based in Shanghai.

A new personal credit reporting company will be led by a Shanghai state-owned enterprise (SOE), making it the first such firm based in the financial center, sources with knowledge of the matter told Caixin.

Shanghai Data Group Co. Ltd. is set to become the largest shareholder of China’s fourth personal credit reporting company, the sources said.

The willingness of major internet firms to invest will hinge on the size of the equity share available to them, according to the sources. They said Hong Kong-listed Qifu Technology Inc., a credit-tech platform, could be the top candidate.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Shanghai Data Group, an SOE, will lead China’s fourth personal credit reporting company, with SOEs expected to hold at least 70% equity.
Existing credit reporting firms—Baihang, Pudao, and Qiantang—feature rising SOE ownership and primarily use internet-sourced data; Shanghai's new agency will likely rely on public government data.
Leading internet firms show little interest due to limited equity and influence; companies like ByteDance and Meituan have declined participation.

AI generated, for reference only

Who’s Who

Shanghai Data Group Co. Ltd.: Shanghai Data Group Co. Ltd. is a Shanghai state-owned enterprise (SOE) established in 2022 to make better use of the city's data resources. It is set to become the largest shareholder of China's fourth personal credit reporting company. This new company's primary data source is likely to be public government data, distinguishing it from existing firms that rely on internet sources.

Qifu Technology Inc.: Qifu Technology Inc., a Hong Kong-listed credit-tech platform, is a top candidate to invest in China's fourth personal credit reporting company. However, Qifu stated they would not want to be involved if they only receive a small share, as they couldn't lead operations or earn profits.

Baihang Credit Co. Ltd.: Baihang Credit Co. Ltd. is one of China's three licensed personal credit reporting firms, based in Shenzhen. Established in 2018, it is backed by China's central bank and an industry group holds a 36% stake. Its data primarily comes from internet sources.

Pudao Credit Co. Ltd.: Pudao Credit Co. Ltd. is one of China's three personal credit reporting firms licensed by the People's Bank of China. Established in 2020, it is controlled by a Beijing municipality state-owned enterprise, with JD.com Inc.'s fintech arm as its second-largest shareholder.

JD.com Inc.: JD.com Inc.'s fintech arm is the second-largest shareholder in Pudao Credit Co. Ltd., one of China's three licensed personal credit reporting firms. Pudao Credit, founded in 2020, is primarily controlled by a Beijing municipality SOE.

Qiantang Credit: Qiantang Credit is a personal credit reporting firm based in Hangzhou, China. It is one of three such firms licensed by the People's Bank of China (PBOC). Fintech giant Ant Group Co. Ltd. backs Qiantang Credit, and over half of its shares are held by state-owned enterprises (SOEs).

Ant Group Co. Ltd.: Ant Group Co. Ltd. is a fintech giant that backs Hangzhou-based Qiantang Credit, one of the three personal credit reporting firms licensed by the People's Bank of China. Over half of Qiantang Credit's shares are held by state-owned enterprises, with the rest by private companies.

ByteDance Ltd.: ByteDance Ltd. was considered as a potential investor in Shanghai's new personal credit reporting company. However, ByteDance declined the opportunity. A key reason for their refusal is concern that involvement in a government-backed credit reporting company could exacerbate existing U.S. crackdowns on its international business, especially regarding user data.

Meituan: Meituan, a food delivery giant, declined an opportunity to take an equity stake in a new personal credit reporting company led by a Shanghai state-owned enterprise. Meituan's decision stems from its limited ambitions in financial services.

Beijing Financial Holdings Group Ltd.: Beijing Financial Holdings Group Ltd. is a state-owned enterprise (SOE) that holds a 35% stake in Pudao Credit Co. Ltd., making it the largest shareholder of this personal credit reporting firm. Pudao Credit Co. Ltd. was founded in 2020.

AI generated, for reference only

What Happened When

2018：: Baihang Credit Co. Ltd. was set up in Shenzhen, backed by the central bank (PBOC).

2020：: Pudao Credit Co. Ltd. was founded, controlled by a Beijing municipality SOE with JD.com Inc.’s fintech arm as its No. 2 shareholder.

2020：: A document was released by the Communist Party and the State Council recognizing data as the fifth factor of production.

2022：: Shanghai Data Group was established as a step toward making better use of Shanghai’s data resources.

June 2025：: At the Lujiazui Forum, PBOC Governor Pan Gongsheng announced that a new personal credit reporting institution would be established in Shanghai.

AI generated, for reference only