China Bond-Rating Champ Unfazed by Foreign Competitor Threat
- China Chengxin says domestic firms will prove to have an edge
- Local bond ratings tend to be higher than typical overseas
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The world’s second-largest corporate bond market is opening up to foreign ratings companies, but that’s not fazing China’s local champion, which sees another case of overseas players foundering in a competitive mainland market.
After years of U.S. lobbying to open up financial services to Chinese competition, China agreed last month to allow foreign-owned firms to provide credit ratings in the country by July 16. That gives opportunities to S&P Global Ratings, Moody’s Investors Service and Fitch Ratings, which all welcomed the move. Up to now, they were limited to joint ventures.