--Cross-border cooperation in credit collection business promotes the joint development of the credit collection market in the Greater Bay Area of Guangdong, Hong Kong and Macao
As various industries in the Greater Bay Area of Guangdong, Hong Kong and Macao are developing more and more vigorously, and residents are interacting more and more frequently with each other in the areas of study, employment and living, cross-border credit cooperation and co-construction in the Greater Bay Area has become an urgent need for the three places, namely the Mainland, Hong Kong and Macao. In order to meet the needs of the residents of Guangdong, Hong Kong and Macao in the Greater Bay Area, we start from the necessity and feasibility of cross-border credit collection business, and provide credit collection business services, including telephone research, on-site visits and targeted research reports based on standard credit reports.
The Need for Cooperation in Credit Collection in the Guangdong-Hong Kong-Macao Greater Bay Area
1. Implementing the requirements of the Guangdong-Hong Kong-Macao Greater Bay Area Development Strategy
---2017
The Guangdong-Hong Kong-Macao Greater Bay Area was proposed for the first time in the government work report.
--2018
The government work report included the construction of the Guangdong-Hong Kong-Macao Greater Bay Area in the "Regional Coordinated Development Strategy".
--2019
The Outline of the Plan for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area was released.
--April 2020
The Opinions of Four Departments of the People's Bank of China on Financial Support for the Construction of the Guangdong-Hong Kong-Macao Greater Bay Area explicitly stated that "cross-border credit cooperation will be promoted, and support will be given to credit bureaus of Guangdong, Hong Kong and Macao to carry out cross-border cooperation, and explore the promotion of the mutual recognition of credit products, so as to provide credit services for the Guangdong-Hong Kong-Macao Greater Bay Area". The integration and development of credit services in the Greater Bay Area of Guangdong, Hong Kong and Macao is an important part of the economy and finance of the Greater Bay Area, and is a concrete measure to implement the development strategy of the Greater Bay Area.
2.The Importance of Risk Prevention in Promoting the Economic Development of Guangdong, Hong Kong and Macao Bay Area
Under the background of economic globalization, market economy is credit economy, and the development of market economy is accompanied by the creation of credit risks.
The financial credit information, commercial credit information and public credit information of Guangdong, Hong Kong and Macao are all independent of each other. Market economic entities in the Guangdong, Hong Kong and Macao Greater Bay Area are unable to understand each other's credit status in a multi-dimensional manner during the process of credit and transaction, which not only restricts the willingness of market economic entities to conduct transactions, but also greatly increases the credit risk during the process of credit and transaction.
The integration and development of credit services in the Greater Bay Area of Guangdong, Hong Kong and Macao is of great significance in promoting the economic development of the Greater Bay Area of Guangdong, Hong Kong and Macao, preventing risks, and is also a basic requirement for building a safe and stable business environment in the Greater Bay Area.
3. Meeting the growing demand for credit inquiry
With the high level of national attention and the support of various policies, the Guangdong-Hong Kong-Macao Greater Bay Area is developing at a high speed, and the residents of the three places are having more and more frequent economic and living exchanges. In terms of cross-border livelihood, Guangdong, Hong Kong and Macao have formed a better foundation for cooperation and development in areas such as employment, social security, medical care and education.
Data on people's livelihood show that:
Hong Kong and Macao residents living and working on both sides of the Taiwan Strait have generated a lot of demand for credit inquiries.
Data show that inquiries for Hong Kong, Macao and Taiwan residents traveling to and from the mainland have grown significantly despite the epidemic.
Business query data shows:
The cross-border development of financial business has also created a high demand for credit reference checks.
In terms of cross-border wealth management, Hong Kong and Macao have become a window for mainland investors to allocate global assets, while Hong Kong and Macao investors also wish to share the wealth dividends brought by the economic development of the Mainland.
Business data of "Cross-border Wealth Management":
In terms of cross-border financing, as the economic integration of the Greater Bay Area accelerates, commercial banks with a presence in Guangdong, Hong Kong and Macao have begun to integrate their credit business across the three regions to enable cross-border services for enterprises in the Greater Bay Area.
As of the end of October 2021, the Guangdong banking industry supported the Greater Bay Area with a loan balance of RMB 19.46 trillion, an increase of 11.8% year-on-year, according to data from the Guangdong Banking and Insurance Supervision Bureau.
According to the survey on the demand for credit inquiries by 22 commercial banks conducted by the Guangzhou branch of the People's Bank of China since 2019 and the return interviews, there is a strong demand for credit inquiries from commercial banks in the Mainland, Hong Kong and Macao.
For example, the Guangdong Branch of ICBC, the Guangdong Branch of CCB, and the Head Office of GFB indicated that when handling credit, payment for off-site account opening, internal guarantee and external loan, and external guarantee and internal loan for Hong Kong and Macao residents and enterprises (including guaranteed enterprises and affiliated enterprises that are Hong Kong and Macao enterprises), enterprises with business operations in Hong Kong and Macao, or enterprises with Hong Kong and Macao individuals as legal representatives (shareholders or as mortgagees or guarantors) of the enterprises, they need to Understand the indebtedness and creditworthiness of the individual or enterprise in Hong Kong and Macau.
Hong Kong's Dah Sing Bank and Hang Seng Bank hope to share the information collected by the Mainland's credit reference system through appropriate channels to understand the creditworthiness of Hong Kong and Macao customers in the Mainland.
4. Favorable promotion of factor flows in the Guangdong-Hong Kong-Macao Greater Bay Area
The Guangdong, Hong Kong and Macao Greater Bay Area, with its world-class port clusters and vast economic hinterland, is gradually developing into one of the most important capital gathering centers in the world.
However, the differences in the economic systems, legal systems, administrative systems and social cultures of Guangdong, Hong Kong and Macao have led to a low level of trust in the cooperation and interaction among the three places, which has resulted in a poor flow of various industrial factors, such as talents, capital, technology and information, and hindered the further opening up and development of the economy of the Greater Bay Area.
The integration of credit services in the Greater Bay Area promotes the free flow of credit information among the Greater Bay Area, which is conducive to promoting cooperation among enterprises and organizations in the Greater Bay Area and facilitating the flow of various industrial factors in the Greater Bay Area.
Feasibility of Convergence of Credit Products in Guangdong, Hong Kong and Macao Bay Area
1. The new model of "government + market" dual-wheel drive provides more possibilities for the integrated development of credit collection in the Greater Bay Area.
In the late 1990s, China established a national unified public credit collection system led by the central bank.
In the early 21st century, a unified nationwide personal and corporate credit collection system was built and the People's Bank of China Credit Collection Center was established, and China's credit collection industry began to develop rapidly.
By the end of 2021, the People's Bank of China's credit collection system (II) included 78.38 million enterprises and other organizations and 1.13 billion natural persons.
With the establishment of a number of licensed credit bureaus, a new "government + market" two-wheel-driven credit model has begun in China, which is a powerful complement to the PBOC's credit system. The market-oriented development of the credit collection industry has been further promoted, which is conducive to increasing the effective supply of credit collection. The construction model of "government + market" promotes China's credit collection industry to embark on the fast track, and also provides more possibilities for cross-border credit collection cooperation.
2. There is room for coordination of "exceptional conditions" for cross-border cooperation in credit collection at the legal system level.
Guangdong, Hong Kong and Macao all emphasize the protection of personal privacy. The Personal Information Protection Law of the People's Republic of China (PIPL), which came into effect on November 1, 2021, provides a legal basis for cross-border credit cooperation in principle and in conditions. Hong Kong's Personal Data (Privacy) Ordinance and Macao's Personal Data Protection Law require strict protection of personal information, but at the same time set "exceptional conditions" for the flow of personal information. This provides room for harmonization of the legal systems of Guangdong, Hong Kong and Macao in the process of interoperability of credit products.
3. Cross-border credit collection business practice, providing reference for cross-border cooperation in credit collection in the Greater Bay Area
As a credit bureau registered with the Guangzhou Branch of the People's Bank of China, Guangzhou ChiShan Credit Collection Agency can provide cross-border corporate credit services, such as providing on-site credit investigation reports of Mainland enterprises to Hong Kong purchasing entities, or playing the role of a window for Hong Kong's credit bureaus in purchasing credit reports of enterprises outside Hong Kong.
WiseCredit has designed a standardized corporate credit report for the needs of the main target customer groups, which contains more than 10 modules, including investigation description, comprehensive evaluation, basic information, business status, business risk, financial statement analysis and so on. In addition to the standard credit report format, it will also provide customized services according to the needs of customers, using the standard credit report as the benchmark and providing services such as telephone research, site visits and targeted research reports.
There are differences in the basic project design and core information content between the central bank's corporate credit report products and those of the WiseCredit agency (see Table 1), and it can be seen that WiseCredit's corporate credit report and customized services are a powerful complement to the central bank's credit report for the provision of cross-border credit services in the Guangdong, Hong Kong and Macao Greater Bay Area.
Credit bureaus in Guangdong and Hong Kong have set up self-contained credit products and have full knowledge of the needs of their respective target segments, credit business and financial market requirements, etc. Combining the current experience of credit bureaus in the cross-border service of credit products in the two places will be conducive to the promotion of the convergence and innovation of credit products in Guangdong, Hong Kong and Macao in the Greater Bay Area.
