But in other parts of China, informal financing is very risky, and it even falls into disguise for intentions cheating. The reason behind such phenomena is the different credit environment in different regions. Economic development in Zhejiang is based on private enterprises, full market competition and completed transformation of governmental function, which hold great significance to the cultivation of credit culture.
With regard to improving social credit system, the focus should be placed on the establishment of enterprise and individual credit registration system by accelerating legislation of credit registration laws and regulations so as to set up a regulated credit registration market.