Shanghai lawmakers are deliberating a draft regulation on the establishment of a social credit system.

The draft, which was put under first reading by the Standing Committee of the Shanghai Municipal People's Congress this week, stipulates concepts of credit-related information, rules to collect and share the information, as well as rewards and punishment.

It says credit-related information is an objective record of both law-abiding and "discredited behavior," noting that some private information, such as religious belief, gene information, fingerprints, blood type, and diseases, should not be included.

The collection of income, deposits, marketable securities, commercial insurance, real-estate information and tax should be only allowed with providers' written consent, the draft said.

The draft also clarifies serious discredited behavior, which includes behavior that seriously damage health and safety in a range of areas.

Those placed on a blacklist could be banned entry from certain industries and markets, and restricted on trade of public resources, operation in infrastructure and public utilities, and financial activities, among other punitive measures.

On the contrary, the credit-worthy will be encouraged by the government. For example, they could enjoy more convenient services when applying for administrative approval.

Information can only be disclosed and used for five years, the draft said.

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