China's central bank has started its process to approve a planned credit reporting agency focusing on online lending.
The planned agency, named Baihang Credit Scoring, is set to be backed by a number of internet companies including Alibaba and Tencent, according to a statement from People’s Bank of China on Thursday.
The government-backed National Internet Finance Association of China is set to become Baihang’s largest shareholder, owning 36% of the company. Eight credit firms including Alibaba’s Zhima Credit and Tencent Credit will each have shares of 8 percent.
With such a shareholding structure, Baihang will not become a subsidiary of any of its shareholders.
The company will have a registered capital of 1 billion yuan (more than 150 million U.S. dollars).
This is set to be the first unified credit platform for internet-based lending.