Chinese Bankruptcy Regulation Set to Boost Social Credit System

China's first regulation on individual bankruptcy, adopted in August in Shenzhen, Guangdong province, will play a big role in stimulating the country's market vitality, maintaining its social stability and helping it improve its credit system, a high-placed bankruptcy court official in the city said, China Daily reported. The regulation takes effect on March 1. It is seen as a key step by Shenzhen, the nation's first special economic zone, in setting up a system for entities to withdraw from the market by rule of law, according to Cao Qixuan, chief judge of the Shenzhen Bankruptcy Court at the Shenzhen Intermediate People's Court. Cao regarded the system as a second chance for "honest but unlucky "businesspeople, saying it will help them "take a breath" from heavy debts they can't pay off and sharpen their competitive edge to drive the country's economy through innovation. Read more.