Steven W. Alesio, Chairman and Chief Executive Officer of D&B announced on November 3rd 2006 during the Q3 2006 Earnings Conference Call, the creation of a joint venture in China with Huaxia Credit International. The joint venture is expected to create the largest commercial credit information company in China in terms of revenue and the size of the China database. By leveraging its DUNSRight process, D&B is expecting to generate more value added from an expanded China data base. To have a local partner with good ‘Guanxi’ is an excellent move, which will provide D&B with a considerable competitive edge over local and foreign competition.
 Huaxia International Credit Group was founded in August 1993. It is headquartered in Beijing, has subsidiaries, branch companies and offices in Shanghai, Guangzhou, Chongqing and Changping District of Beijing respectively. The group consists of member companies including Huaxia International Credit Consulting Co., Ltd., Huaxia International Market Research Co., Ltd., Huaxia International Consumer Credit Consulting Co., Ltd. and Huaxia Account Receivable Management Co., Ltd. The group has an International Business Division, Credit Management Consulting Division and other business divisions. Huaxia Credit is a leading provider of business information and credit management services in China. By leveraging advanced information technologies, an experienced work force, extensive reporting network and dynamic databases, Huaxia Credit provides domestic and overseas business credit reports, sales leads, market research reports, consumer credit reports, database marketing, consulting services to businesses, insurance companies, multinationals, commercial banks, government departments in and outside China and has gained national and international recognition. Huaxia Credit is managed by its Chairman and cofounder Dr. Cao Xiaoning, an energetic entrepreneur who committed himself in 1993 to the pioneering task of promoting credit risk management in China. He is a well known personality at international credit information industry conferences and has become a leading authority on credit management and information services in China. Source: Huaxia Credit website

China is beginning to recognize the importance of consumer and trade credit and is working vigorously on a ‘Social Credit System’, the Chinese term for credit culture and credit system. The ‘social credit system’ embraces all components of a modern credit system: a legal and regulatory framework, borrowers, lenders, credit management, credit information and decision systems as well as accounts receivables management services. The market for credit information in China is embryonic and is estimated to be in the range of US$30 to US$50 million. Nevertheless the market potential is huge, given the increasing role of credit in China’s economy and the reliance on accurate, reliable and timely information. What is remarkable about the deal is the fact that Huaxia Credit was the partner of the COFACE Information Alliance. The industry is now wondering what made Huaxia Credit switch camp.

 BIIA Newsletter October – 2006 Issue