At the signing ceremony of the “Self-regulation Convention of Securities Rating Industry” (the “Self-regulation Convention”) yesterday in Beijing, Vice Chairman Zhuang Xinyi of the China Securities Regulatory Commission (CSRC) said that the signing demonstrates the local securities rating industry’s goal, requirements and gesture in its infancy, and that the local industry will have a good opportunity to develop when the global rating industry is undergoing significant changes.
Five rating organizations, namely, China Chengxin Securities Rating Co., Ltd., Shanghai Brilliance Credit Rating & Investors Service Co., Ltd., Pengyuan Credit Rating Co., Ltd., Dagong Global Credit Rating Co., Ltd. and China Lianhe Credit Rating Co., Ltd., which have obtained the licenses for credit rating on the securities market from the CSRC and joined the Securities Association of China (SAC), signed the “Self-regulation Convention” at the signing ceremony and promised to conduct the securities credit rating in line with the “Self-regulation Convention”.
According to Zhuang, as the local securities rating industry is still at its infancy, the prospective image, notion and self-requirements are significant to the current and future development. Signing the “Self-regulation Convention”, a vital event at the initial stage, marks the emerging industry’s goal, requirements and gesture.
The significant transformation in the global rating industry is bringing about a good opportunity to China’s securities rating industry, so “we will be able to observe and learn the lessons of the international rating industry before recollecting and fully considering the problems”. While the global rating industry is much doubted and seeking for a reform path again, the gap between our industry and the global one is narrowed. “Though lagging behind in terms of experience and foundation, the local rating organizations are at the same level with the foreign counterparts in understanding, exploration and re-launch through reform”, Zhuang said.
Zhuang added that the “Self-regulation Convention” is neither a requirement of the regulator on the rating organizations nor a requirement of the SAC on its members. Instead, it was created by rating organizations independently on the SAC’s platform, representing the practitioners’ intention and a common understanding of the rules to be followed by the industry.
Zhuang was confident that the securities rating organizations in future “will be more than five”. Those with the business licenses should set an example by creating a positive industry atmosphere and draw up a general development plan.
“I believe the industry will consciously implement the ‘Self-regulation Convention’ as a result of its feasibility. The implementation shows the high-quality of China’s rating industry at the initial stage, the industry’s requirements on self-regulation and self-management as well as the responsibility for the market, clients and the society.”
Zhuang said the regulatory authority should formulate the supervision rules in a scientific, appropriate and effective way, so that in a reasonable and effective external supervision environment, the rating industry can not only prevent and eliminate the systematic risks and external problems but also effectively use the space and environment suitable for the industry development. “We have reason to believe that our securities rating industry at its infancy will give full play to various favorable factors and advantages and realize its sound and steady development in accordance with regulations.”
Source: Shanghai Securities News