Shandong Administration for Market Regulation has recently issued the Regulations on Differentiated Supervision Based on Enterprises’ Credit Risk Rating in Shandong Market Regulation System and will implement differentiated supervision on enterprises according to their different credit risk ratings.
According to a spokesperson for the Administration, the credit risk rating of enterprises features “non-remark, non-punishment, non-publicity, non-exemption”. This means that the Administration will only assess, rather than remark on the credit risk condition of enterprises or implement joint punishment by departments; the Administration will use the result only as a reference index for the allocation of supervision resources without revealing it to the public; and it will adjust the proportion and frequency of spot check on enterprises according to the rating, but will not exempt any enterprise from spot check.
Shandong will establish a 7-dimension system, including nature of the enterprise, registration permit, annual report publicity, law and regulation compliance, public opinion, affiliated enterprises, and operation capabilities. It will use modern technologies such as the Internet, big data, machine learning, etc. to build a classification management model which automatically classifies enterprises’ credit risk from low to high into five categories of A, B, C, D, and E. The Administration will reduce the proportion and frequency of spot check on enterprises with lower credit risk rating, increase on those with higher, and list the latter as key targets for rectification.