China's Supreme People's Court (SPC) is to compile and publish a blacklist of those who have defaulted on court-ordered payments. The list will be the first of its kind in China.

The regulation, which allows courts to publicize the names of defaulters, came into effect on October 1.

The SPC, with the cooperation of state-owned banks, will punish parties involved in lawsuits who fail to pay damages. Punishment may take the form of further investigation and the freezing or transferring of assets, according to a memorandum previously signed by state-owned banks in conjunction with the SPC.

According to the memorandum, an exclusive channel for sharing names of defaulters between courts and commercial banks will also be established.