Promulgating Entities: State Administration for Market Regulation Document Number:国市监信发〔2022〕6号 Promulgation Date: 2022-1-13 [Source]https://gkml.samr.gov.cn/nsjg/xyjgs/202201/t20220113_339100.html
People’s governments of provinces, autonomous regions, and cities directly under the jurisdiction of central government, and all State Council ministries and commissions and directly managed agencies:
Advancing the administration of enterprise credit risk classification is an important measure for implementing the Party Central Committee and the State Council's decision-making and deployments for the reform"streamlining administration and improving services" to optimize the business environment, it is an important part of creating new forms of credit-based regulatory mechanisms, it is urgently needed to increase the efficacy of regulatory work such as the "2 randoms, 1 disclosure", and it has an important role in optimizing the allocation of resources and creating a market environment that is honest and trustworthy and has fair competition. In recent years, the reform of "streamlining administration and improving services" has effectively stimulated market vitality and societal creativity, the number of market entities has rapidly increased, new industries, new business forms, and new models have vigorously developed, creating a higher demand on market regulatory deprtments' regulatory resources and regulatory capacity, and for smarter regulation. The following Opinions on comprehensively advancing the administration of enterprise credit risk classification in the market regulation system are hereby submitted with the approval of the State Council, so as to effectively resolve the problem of regulatory forces being insufficient for the heavy regulatory tasks, and to further increase the efficacy of regulation.
I. General Requirements
(1) Guiding Thought.
With Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as guidance, throughoughly implement the spirit of 19th Party h Congress and its plenary sesson, fully implement the Party Central Committee and the State Council's decision-making and deployments for the reform of "streamlining administration and improving services" to optimize the business environment, persist in being problem-oriented, accelerate the transformation of government functions, focus on advancing the state governance systems and modernizing governance capacity, establish a market system with high standards, innovate and strengthen regulation that covers the full chain and are sectors: ex-ante, ongoing, and ex-post, advance efforts on the administration of enterprise credit risk classification in accordance with laws and regulations, rationally assess the degree of risk that enterprises will break laws and be untrustworthy, implement hierarchical and categorical regulation based on regulatory subjects credit risk level and industry characteristics, strengthening spot checks and inspections aimed at prominent problems and potential risks, making it so that regulatory resources are reasonably allocated and effectively used, advance regulation that is precise, effective, wise, and just, increase the overall efficacy of regulation, and better the high-quality developemnt of the economy and society.
(2) Basic Principles.
Correct positioning to serve regulation. The administration of enterprise credit risk classifications is primarily to serve regulatory work such as "two randoms and one disclosure", enabling regulation through numbers and credit. Classification outcomes are to be an internal basis for consideration in the allocation of regulatory resources and are not to be credit appraisals of enterprises.
Clarify standards and rationally classify. Rationally establish a system indexes for categorizing enterprises' credit risk, dynamically manage indicators and weighting, comprehensively use various information involving enterprises, use information technology methods to carry out prompt and automated classification, and objectively reflect enterprises' credit risk status.
Strengthen applications and classification policy. Based on enterprises' credit risk status and the results of monitoring and early warnings, reasonably determine key areas for regulation, regulatory methods, spot check proportions and frequencies, and so forth; promoting the transformation from undifferentiated, broad-stroke regulation to regulation that is differentiated and precise.
Collaboration and efficacy, sharing and joint use. Strengthen top-level design, collaborating to advance efforts on the administration of enterprise credit risk classification, fully aggregating information on enterprise credit risk, and promoting the sharing and joint use of enterprise credit risk classification outcomes, to bring about the widespread increases in the efficacy of regulation.
(3) Work Goals.
Expand the concept and methods of administering enterprise credit risk classification to market regulation of every business sector, using the outcomes of enterprise credit risk classification to rationally allocate regulatory resources, increasing the timeliness, precision, and efficacy of regulation, and making it so that the untrustworthy who break laws are regulated 'wherever they go', and the creditworthy and law-abiding are left "undisturbed", promoting fair competition and survival of the fittest through just regulation. By the end of 2022, each provincial department for market regulation is to establish work mechanisms for general use enterprise credit risk classification, carry out rational classification of all enterprises in the jurisdictional area, and normalize the use of enterprise credit risk classification outcomes in regulatory work such as 'two randoms, one disclosure'. By the end of 2023, each provincial department for market regulation is to bring about the effective integration of the administration of enterprise credit risk classifications and professional sector management, establishing and completing mechanisms for hierarchical and categorical regulation of enterprises to be applied in professional sectors. Strive to have the market regulatory system fully implementing the administration of enterprise credit risk classifications within roughly three years, effectively realizing monitoring and early warnings on enterprise credit risk, and working towards the early discovery, notification, and handling of risks.
II. Rationally carry out classification, precisely assessing enterprise credit risk
(4) Establish a system of indicators for enterprise credit risk classification. The State Administration for Market Regulation is to establish a general-use system of indicators for enterprise credit risk, to bring about relative uniformity in standards for enterprise credit risk classification throughout the nation. Build a classification index system focusing on aspects such as information on the enterprises' basic nature, dynamic enterprise information, regulatory information, association and relationship information, and societal assessment information; rationally assigning index weights and continuously updating and adjusting them based on regulatory conditions, to optimize and improve them. Within the framework of the State Administration for Market Regulation's index system, provinces (autonomous regions, directly governed municipalities) that have the capacity may build general-use enterprise credit risk classification index systems suited to local conditions and having local characteristics. Market regulation of every business sector may establish a professional hierarchical and categorical index system in consideration of the characteristics of that sector and with reference to the general-use enterprise credit risk classification index.
(5) Fully and effectively aggregate enterprise credit risk information. In accordance with the requirements of the enterprise credit risk categorization index system, all levels of market regulation department are to fully and promptly aggregate enterprise credit risk information through the National Enterprise Credit Information Publicity System (hereinafter Publicity system) . Information such as enterprise registrations, filings, equity pledge registrations, intellectual property rights pledge registration, administrative permits, administrative punishments, inclusion in the list of business anomalies or the list of serious untrustworthy entities, and spot checks should be aggregated on the market regulation system; enterprise credit risk information from sectors such as food and drug safety regulation, special equipment safety regulation, industrial product quality and safety regulation, governance of infringements and counterfeiting, pricing enforcement, anti-monopoly and anti-unfair competition enforcement, consumer rights protections, measurements, standards, inspections, testing, certification, and should be integrated and aggregated; coordinate and promote the effective aggregation of information related to entrpises created by relevant departments in the performance of their duties such as on administrative permits, administrative penalties, lists of serious untrustworthy entities, and spot checks, relying on the publicity systems; and encourage exploring the use of credit risk information related to enterprises that is held by public enterprises and institutions, industry associations, chambers of commerce, large-scale platform enterprises and other relevant parties to further consolidate the foundation of enterprise credit risk classification. Through the publicity system, the State Administration for Market Regulation is to employ "top-to-top" methods to aggregate information related to enterprise credit risks that is held by central departments, and send it to each provincial market regulation department.
(6) Overall planning for the establishment of the administration of the enterprise credit risk classification system. With reliance on the publicity system, each provincial market regulation department should establish an enterprise credit risk classification system in accordance with a unified information technology plan for the administration of enterprise credit risk classification, and connect it with the '2 randoms, 1 disclosure' regulatory work platform, to provide technical support for automated enterprise credit risk classification and the sharing and joint use of classification outcomes. Systems already established and used by cities and regions should be integrated and assimilated into the provincial enterprise credit risk classification systems, to avoid redundant establishment and multiple classifications. Connections between the enterprise credit risk classification systems and market regulation departments' corresponding operations systems should be completed, establishing a closed-loop model for information aggregation, analysis, processing, sharing, and application.
(7) Carry out the automated classification of enterprises in accordance with their credit risk status. All provincial market regulation departments are uniformly responsible for conducting credit risk classification of enterprises in their jurisdictional region, dividing enterprises into four groups based on their credit risk: Low credit risk (A), Normal Credit Risk (B), Higher Credit Risk (C), High Credit Risk (D). Analysis of enterprises' business conduct and operational rules should be enhanced, comprehensively using big data, machine learning, artificial intelligence, and other modern technologies, to carry out consolidation and integration, association analysis, and data mining of all types of information involving enterprises, and conduct automated categorization through reliance on information systems. Enterprise credit risk classification outcomes are to be recorded under the enterprises' names, dynamically updated on a monthly basis, provided to each level of market regulation department for sharing and joint use, and sent to the State Administration for Market Regulation in accordance with uniform data specifications.
III. Enhance the use of Classification Outcomes to Increase the Precision and Efficacy of Regulation
(8) Bring about organic integration with '2 randoms, 1 disclosure' regulation. Provincial market regulation departments should send all enterprise credit risk classification results to the '2 randoms 1 disclosure' regulatory work platform, and link it to the directory of the subjects of spot-checks. When making plans for "2 randoms 1 disclosure" regulatory spot-check work, each level of market regulation department should reasonably determine and dynamically adjust the proportion and frequency of spot check based on the enterprise credit risk classification results, and implement differentiated regulation. For type A enterprises, the proportion and frequency of spot checks may be reasonably reduced, and it is allowed to not proactively carry out on-site inspections, in order to make them 'undisturbed'; except and where there are complaints or reports, issues discovered by big data monitoring, or transferred case leads, or where laws and regulations provide otherwise; For type B enterprises, the proportion and frequency of spot checks are to follow normal rules; For type C enterprises, give special attention and appropriately increase the proportion and frequency of spot checks; For type D enterprises, implement strict regulation, drastically increase the proportion and frequency of spot checks in a targetted manner, and when necessary, proactively carry out on-site inspections. The results of spot checks should be promptly shared with the enterprise credit risk classification system through the "2 randoms, 1 disclosure" regulatory work platform, to provide real-time data support for dynamic updating of enterprise credit risk classification results.
(9) Advance effective integration with risk prevention and control in professional sectors. General-use enterprise risk classification does not replace the grading and classification of enterprises for market regulation in each professional sector. In key sectors such as food, drugs, and special equipment, which are directly related to the public's security in their lives and property and to public safety, or that have greater latent risks or higher risk to society, while carrying out key regulation in accordance with existing provisions, simultaneously coordinate industry risk prevention and control and management by enterprise credit risk classification, to implement full-chain regulation. Other professional sectors for market regulation may directly use the general use enterprise credit risk classification outcomes, or may build hierarchical and categorized regulation mechanisms for the sector with reference to the general use model of management by enterprise credit risk classification.
(10) Explore and improve the regulation of new industry, new business forms, and new models. For new industries, new business forms, and new models, credit risk classification outcomes should be considered, and the implementation of more scientific and effective regulation should be explored to close regulatory loopholes. Dynamically adjust regulatory policies and measures on the basis of enterprises' credit risk status, and give an 'observation period' for enterprises with low or normal credit risk and explore pursuing triggered regulation, giving enterprises sufficient space to develop, so long as the bottom line of safety is strictly observed; strict regulatory measures should be employed for enterprises with high credit risk to prevent potential risks from becoming outstanding problems in the region or industry.
(11) Expand the use of enterprise credit risk classification outcomes. All levels of market regulation department should actively explore the comprehensive use of enterprise credit risk classification outcomes, emphasizing consideration of them when handling related operations. Actively promote the consideration of enterprise credit risk classification outcomes by relevant departments in the market regulation field when carrying out the 'two randoms, 1 disclosure' and other regulatory work. At the same time, strengthen communication with enterprises, conducting risk notifications at appropriate times to guide enterprises to strengthen self-management and self-restraint, and to conduct business in accordance with law and good faith.
IV. Strengthen monitoring and early warnings to effectively prevent and resolve risks
(12) Strengthen credit risk monitoring and early warnings for enterprises. Each provincial market regulation department should consider the administration of enterprise credit risk classification in actively advancing enterprise credit risk monitoring and early warnings, building a monitoring and early warning module in enterprise credit risk classification systems. Based on the regulatory needs and key points for regulation in each professional sector, understand the high-risk conduct and traits discovered in routine regulation that are wide-spread or norms; select several key indicators from the enterprise credit risk classification index system that are highly correlated with enterprise credit risk, such as abnormal registration, abnormal changes, or an abnormal increase in complaints and reports, and conduct real-time monitoring for timely early warnings about potential enterprise risks, and to push the regulatory thresholds forward. Employ measures such as alerts, warnings, calling parties in to speak with them, and inspections in accordance with the principle of having 'all those who approve regulate, and all those who are in charge regulate'; to address potential enterprise risks in accordance with law.
(13) Strengthen the comprehensive assessment and handling of enterprise credit risks. All levels of market regulation department should persist in systematic thinking and enhance overall understanding, to increase the comprehensive analysis of the development and changes of enterprise credit risks, increase foresight, focus, and efficacy in regulation, and transform passive regulation into active regulation. Enterprise credit risk classification outcomes should be comprehensively analyzed to rationally assess the collective credit risk status of a region or industry, and discover high-risk regions or industries early and employ directed spot checks and inspections, special inspections, and other measures to prevent and resolve risks.
V. Safeguard Measures
(14) Strengthen organizational leadership. Political stances should be increased, fully recognizing the important significance of advancing the administration of enterprise credit risk classifications and further increasing the efficacy of regulation, strengthening overall planning, coordination, and research deployments, solidly and effectively completing each item of work. Firmly establish the idea of 'a single gameboard' strengthening coordination and cooperation, the interconnectivity of information, and work linkages. Encourage each region to consider actual conditions and boldly explore innovative measures in the administration of enterprise credit risk classifications; regions with the capacity may further explore implementing administration of credit risk classification for privately-owned businesses, farmers' professional collectives, and other market entities.
(15) Implement strict responsibility. Enhance awareness of responsibility, improve accompanying measures, focus on work implementation. Clarify responsibility for information security, build systems for data security responsibility, strengthen the security infrastructure and preventive security capacity for enterprise credit risk classification systems, and prevent leaks and disclosures of secrets and encroachments on personal privacy. Conduct that violates laws such as by leaking or altering classification outcomes or using related information to seek personal benefits should be strictly punished in accordance with law.
(16) Do a good job of publicity and training. Use multiple channels and methods to strengthen guidance and operation training for the administration of enterprise credit risk classifications, continuously increasing regulatory capacity and levels. Promptly combine and spread advanced models from experience, actively publicize accomplishments from efforts in the administration of enterprise credit risk classification, and promote the formation of a positive environment in which the government regulates justly and enterprises are creditworthy and self-disciplines.
State Administration for Market Regulation
January 13, 2022