China’s National Development and Reform Commission (NDRC) has released revisions to two 2014 policies that govern bond issues and record-keeping (Credit China):
[The] Finance Department of the NDRC said that strengthening social credit management in the issuance of corporate bonds and implementing joint disciplinary action against untrustworthiness are among the priorities of this revision.
The revised policies, Guidelines for Corporate Bond Tendering and Issuance (企业债券招标发行业务指引 – PDF) and Guidelines for Corporate Bond Issuance Bookkeeping (企业债券簿记建档发行业务指引 – PDF), include an article clearly stipulating that violations of bond issuance regulations and failure to honor bond issuance agreements will be recorded in the violator’s social credit file, and will trigger penalties from multiple state bodies.
Policymakers have been working overtime to strengthen the policy framework that underpins social credit and work the social credit system deeper into the regulation of various industries. These revisions are yet another step in that direction.