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China’s courts have said a social credit system is needed to rein in the country’s hangover of bad debt — both personal and corporate — because the lack of a personal bankruptcy law and a comprehensive financial credit system has.

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The central bank’s action is also in line with intentions to strengthen regulation in China’s financial sector, particularly in fintech, according to Lillian Li, vice-president and senior analyst, credit strategy and standards, at Moody’s.

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Yet, one issue that will not wait and is a ticking time bomb is the Chinese credit bubble. That bubble is primed to. my trip from Shanghai to Nanjing was on one of the new high-speed rail lines being built under direction from the central.

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