Personal credit system update closes fake divorce loophole in China

SHANGHAI - China's central bank has said it will launch the second iteration of its personal credit system on January 20, closing loopholes in the earlier version which allowed users to whitewash credit records with fake divorces or account closures.

China media group Technode reports that the revision "improves upon some of the major flaws in the first version, including long lag times and gaping loopholes, while posing little threat to online loan providers and their lending ecosystems, which are said to remain far more convenient and user friendly.

In one of the new changes, if a secondary borrower buys a house again following a divorce, preferential policies for first-time buyers no longer apply. www.webershandwick.cn (ATI).