Taizhou Regulations on the Promotion of Enterprise Credit are scheduled to take effect in Taizhou, Zhejiang province on July 1 this year, Taizhou Daily reported on May 26.

The regulations are the first of their kind in China and are expected to boost the development of private economy in Taizhou.

The regulations state that companies need to improve their credit in production, management, labor employment, safety management, environmental conservation, and social financing.

The Taizhou Municipal Government is required to establish a city-wide comprehensive evaluation mechanism for public credit. The evaluation results should be open to the public and offered to relevant companies for reference.

The municipal development and reform departments are required to establish an information catalog on enterprise credit and update the catalog at regular intervals.

The regulations encourage financial and insurance instituions to give preferential treatment to companies that receive high credit scores, including higher loan limits, more liberal repayment schedules, and mortgage relief.

Moreover, the regulations also encourage the People's Bank of China and China Banking Regulatory Commission to increase their policy assistance to financial institutions in supervision rating, market access, reloans, and rediscounts if the said institutions support companies with high credit scores.

As the birthplace of private economy in China, private companies in Taizhou account for 99.5 percent of the total market, create more than 90 percent of job opportunities, and contribute to 77.5 percent to the local GDP.

Taizhou Regulations on the Promotion of Enterprise Credit are scheduled to take effect on July 1 this year and are expected to boost the development of private economy in Taizhou, Zhejiang province. [Photo/WeChat account: tzfb001]