Core Viewpoint - The People's Bank of China is implementing a one-time personal credit relief policy to help individuals who defaulted on loans during the pandemic, allowing for the removal of certain negative credit records if the loans have been repaid [1][3][4]. Group 1: Policy Details - The new policy will not display personal default information in the credit system for individuals who have defaulted on loans below a certain amount and have repaid them [1][4]. - This initiative is seen as a remedy to the traditional credit system, addressing the pain points of personal credit and stimulating consumer credit potential [3][4]. - The policy is expected to be executed in early next year after necessary technical preparations by the People's Bank of China and financial institutions [1]. Group 2: Conditions for Credit Repair - To qualify for credit repair, individuals must meet two conditions: the default amount must be within a specified range, and the related loans must be fully repaid [4]. - The policy is described as a "credit amnesty" for those who faced genuine difficulties due to the pandemic [4]. Group 3: Current Credit Reporting Issues - The current regulation states that negative credit information is retained for five years, which can severely limit individuals' access to financial services [6][7]. - There are concerns that the five-year retention period is no longer suitable given the current economic environment, as it hinders consumer credit repair and reintegration into the financial system [7][8]. Group 4: Recommendations for Credit Management - Experts suggest that the management mechanism for retaining negative credit information should be adjusted to reflect changes in the credit market and consumer behavior [10]. - There is a call for differentiated treatment of negative information based on loan types to avoid a one-size-fits-all approach [10]. Group 5: Broader Implications for Social Credit System - The focus on personal credit repair reflects broader efforts to enhance the social credit system, which is crucial for effective resource allocation and a favorable business environment [11]. - Recent regulatory efforts have aimed at improving the classification and management of negative credit information, indicating a shift towards a more nuanced approach [11][12].