(Yicai Global) Feb. 2 -- Chinese smartphone maker Xiaomi and e-commerce giant JD.Com are among the founders of the recently set up Pudao Credit, China’s second licensed personal credit agency, according to a CCTV report.

Beijing-based Pudao Credit will offer services such as personal credit reports and identity verification and aims to tackle the credit risks in the consumer and commercial sectors, the report said today.

An executive meeting of the State Council, China’s cabinet, on Nov. 25 emphasized the need for such agencies and to increase the opening-up of the credit reporting sector. Pudao Credit obtained its license from the central bank on Dec. 28.

The new company was founded with registered capital of CNY1 billion (USD155 million), according to the National Enterprise Credit Information Publicity System, and Zhao Yihan, former deputy director-general of the Credit Reference Center of the People's Bank of China, is its legal representative and general manager.

The largest shareholder is Beijing Financial Holdings Group, with a 35 percent stake. JD Digital Technology owns 25 percent, and Beijing Xiaomi Electronic Software Technology and Beijing Megvii Technology each hold 17.5 percent. Pudao Credit’s core employee equity incentive platform holds the remaining 5 percent.

Baihang Credit, the first institution in China to get a personal credit investigation license, was formed by eight parties including the National Internet Finance Association of China, Sesame Credit and Tencent Credit. It was established with registered capital of CNY1 billion in Shenzhen in March 2018.

Editor: Tom Litting