China is looking to consumer spending for growth, but household debt is low by global standards. That’s not good for China’s economy, as the government looks to consumer spending to provide more of the fuel for growth. Tencent began testing its system in August, two years after Ant, an affiliate of e-commerce giant Alibaba Group Holding Ltd. , launched its Sesame Credit personal scores. Such bureaus reach only a third of Chinese borrowers, compared with 90% of borrowers in the U.S. reached by credit bureaus there, according to consulting firm Oliver Wyman. “Without independent validation of the models or the right to challenge and address the underlying data, Chinese citizens are at risk of inappropriate discrimination,” Mr. Lythgoe says.

Source: Wall Street Journal September 25, 2017 01:52 UTC