‘Debt evasion’ fears prompt stricter supervision, even though no individual debts have been fully discharged since launch four years ago
The southern Chinese tech hub of Shenzhen plans to introduce a stricter supervisory mechanism for debtors who apply for personal bankruptcy, aiming to address public concerns over “debt evasion”.
Starting in October, a debtor’s bankruptcy information will be publicly disclosed for up to eight years once a court rules that their outstanding debts be discharged, the city’s bankruptcy administration announced last week.
Shenzhen, in Guangdong province, adjoining Hong Kong, became the first city in mainland China to pilot a personal bankruptcy system in March 2021. Just over 500 cases have been processed since then, encompassing debt restructuring, liquidation and reconciliation totalling 193 million yuan (US$26.89 million).
However, no individual has had their debts fully discharged.
