The new regulation on credit information disclosure enacted on February 9, the first of its kind in the country, will not only better protect the privacy of individuals but also enhance the efficiency of Shanghai's overall credit information collection system, said local government officials.

Shanghai is the only city at this point to have established a credit information system with both individual and corporate information, explained Zhou Weidong, the secretary-general of the Shanghai Municipal Informatization Commission.

He added that since the project kicked off three years ago, the city system has collected information on over 3.7 million citizens.

Credit information is collected by accumulating records of payment on loans, telecommunication bills, as well as water, electricity and gas fees, said Fu Min, the division chief of the commission's credit service department.

This, he said, requires a synergic effort from different local governmental organs.

The new regulation requires officials working in the 37 local governmental administrative departments to aid the process of credit information collecting, which helps improve collection information, say the officials.

Currently, the State Council has only authorized one company - Shanghai Credit Information Service Co Ltd - to collect individual credit information.

Zhou said the regulation will standardize the company's information collection process and help protect privacy.

Collecting personal information on nationality, religious and political beliefs, as well as medication reports, is illegal under the new regulation and this information is barred from being linked to a person's credit.

Collecting credit information via fraud, theft, bribery or threat is also regarded as illegal and the information collected is invalid.

"Many people have negative impressions of the credit information system for fear that they will be harmed. In fact, the system will benefit them," said Chen Zhiguo, general manager of the Shanghai Credit Information Service Co Ltd.

Individuals with excellent credit reports applying for loans from commercial bank need not show a certificate of assets to the bank under the new rules, Chen explained.

(China Daily February 10, 2004)