Laws of the Shanghai Province

(Promulgated on March 17, 2005 by Decree No. 49 of the Shanghai Municipal People' s Government)

Article 1 (Purpose)

For the purpose of normalizing and promoting the collecting of information relating to the credit standing of enterprises, safeguarding the fairness and impartiality in carrying out the collecting of information relating to the credit standing of enterprises, building the credit system of enterprises and creating an environment of social credit, these Procedures are formulated.

Article 2 (Definition)

The collecting of information relating to the credit standing of enterprises mentioned in these Procedures refers to the operational activities that provide products related to credit-information-collecting such as investigation, appraisal or rating reports relating to the credit standing of enterprises by collecting and processing information relating to the credit standing of enterprises entrusted by citizens, legal entities or other organizations.

A credit-information-collecting agency mentioned in these Procedures refers to a lawfully established agency that is specialized in the collecting of information relating to the credit standing of enterprises.

The information relating to the credit standing of enterprises mentioned in these Procedures refers to the information that has formed in the economic and social activities of enterprises and can be used to analyze or judge the credit standing of such enterprises.

Article 3 (Application Scope)

These Procedures shall apply to the collecting of information relating to the credit standing of enterprises and the supervision and administration thereof in this Municipality.

Article 4 (Principles)

The collecting of information relating to the credit standing of enterprises in this Municipality shall practice market operation, government supervision and trade self-discipline.

Independence, objectiveness, impartiality and prudence shall be observed in carrying out the collecting of information relating to credit standing of enterprises so as to ensure the accuracy of products related to credit-information-collecting. The collecting of information relating to the credit standing of enterprises shall not harm the legitimate rights and interests of enterprises, and shall not offend against the public interests and public safety.

Article 5 (Administrative Department)

The Shanghai Municipal Office for the Administration of the Collecting of Credit Information (hereinafter referred to as the Municipal Credit Information Collecting Office) shall be responsible for the promotion, guidance and supervision of the trade for collecting information relating to the credit standing of enterprises.

Relevant administrative departments shall, according to their own functions and duties, cooperate in carrying out the professional guidance and supervision of the collecting of information relating to the credit standing of enterprises.

Article 6 (Reporting for the Record and Making Public)

A credit-information-collecting agency shall, within 30 days following the date at which the industrial and commercial business license is obtained, report to the Municipal Credit Information Collecting Office for the record. The following material shall be submitted for reporting for the record:

1. The industrial and commercial business license (duplicate copy);

2. The explanation of the structure of stock ownership and the organizational structure;

3. The certificates of the credit standing of senior management personnel and the introduction of basic information of relevant professional personnel; and

4. The business scope in carrying out the collecting of information relating to the credit standing of enterprises, the information processing procedures and the cautious measures for information safety.

In case that the contents reported for the record provided in the preceding Clause alter substantially, such alteration shall be reported to the Municipal Credit Information Collecting Office for the record within 30 days after such alteration.

The Municipal Credit Information Collecting Office shall make public relevant information reported for the record according to law.

Article 7 (Annual Report and Investigation of Business Development)

A credit-information-collecting agency shall, in the first quarter of that very year, report to the Municipal Credit Information Collecting Office the business development of the collecting of information relating to the credit standing of enterprises in the preceding year and the adjustment of the business of collecting of information relating to the credit standing of enterprises in this year.

The Municipal Credit Information Collecting Office may organize the establishment of the feedback mechanism for the use of products related to credit-information-collecting to understand the objective evaluation of relevant business of credit agencies in the collecting of information of credit standing.

Article 8 (The Collecting of Information)

A credit-information-collecting agency shall, by lawful means, collect information relating to the credit standing of enterprises, and shall not collect information relating to the credit standing of enterprises by such means as deceit, theft, coercion or by other illegal means.

Article 9 (Handling Disagreement on Information)

A credit-information-collecting agency shall, when the enterprise whose credit standing is collected disagrees on the information relating to its credit standing and provides relevant material, conduct a verification; in case that the information collected is really wrong, a correction shall be made without delay; in case that the information is correct, the enterprise whose credit standing is collected shall be notified; in case that the verification is difficult to conduct, the credit-information-collecting agency shall handle cautiously in accordance with the principle of objectiveness.

Article 10 (Making of Products Related to Credit-information-collecting)

A credit-information-collecting agency shall, on the basis of the original information provided by information suppliers and according to the information processing procedures reported for the record, make products related to credit-information-collecting in a normalized manner, and shall not fabricate or falsify the information relating to the credit standing of enterprises.

Article 11 (Validity of Products Related to Credit-information-collecting)

A credit-information-collecting product provided by a credit-information-collecting agency shall be used for reference only by a user in assessing the credit standing of the enterprise concerned.

Article 12 (Protection of Commercial Secrets)

A credit-information-collecting agency has the duty to keep the confidentiality of the information relating to the credit standing of the enterprise that involves commercial secrets, and shall not provide any unit or individual person such information, except as otherwise provided by laws or regulations or consented by the enterprise whose credit standing is collected.

Article 13 (Avoidance)

Where a credit-information-collecting agency and an enterprise whose credit standing is collected have a connection in their assets or other common interests, which may affect the impartiality of the collecting of information relating to credit standing, the credit-information-collecting agency shall not provide the credit-information-collecting product about the credit standing of such enterprise.

Article 14 (Promotion of the Use of Products Related to Credit-information-collecting in Commercial Activities)

Enterprises and other organizations shall be encouraged to utilize products related to credit-information-collecting and check the credit standing of the other parties in commercial activities such as project cooperation and development, commercial investment, commercial purchasing, and decision-making in operation.

Article 15 (Use of Products Related to Credit-information-collecting in Public Administration)

All administrative departments, executive agencies for administrative affairs, and other organizations undertaking the function of public administration at all levels in this Municipality shall, when handling the matters involving the public entrustment of or contracting out governmental public service projects or the government procurement and bid tendering in the activities of regulating economy, supervising and controlling the market, social administration and public service, use products related to credit-information-collecting as needed.

Article 16 (Making Public Relevant Government Information)

Where a credit-information-collecting agency needs to collect relevant government information when conducting the collection of information relating to the credit standing of enterprises, the "Provisions of Shanghai Municipality on Open Government Information" shall be complied with.

Article 17 (Trade Self-discipline)

A trade organization of credit service shall be encouraged to formulate and implement trade norms, to provide their members with professional direction and service, and to give play to the role of trade self-discipline.

Article 18 (Complaint)

Where any organization or individual person believes that a credit-information-collecting agency commits any illegal activity and infringes upon its or his/her legitimate rights and interests, it/he/she may lodge a complaint to the Municipal Credit Information Collecting Office.

Article 19 (Administrative Punishment)

Where a credit-information-collecting agency fails to report for the record in violation of Article 6 of these Procedures or fails to submit the annual report in violation of Article 7, the Municipal Credit Information Collecting Office shall order it to correct within a time limit; in case that it fails to correct within the time limit, a fine of less than RMB10,000 yuan shall be imposed.

Article 20 (Effective Date)

These Procedures shall become effective on May 1, 2005.