The Chinese government has unveiled a plan to reform the country’s credit ratings industry after a series of defaults by top-rated companies and a scandal that exposed corruption at one of the country’s most famous ratings agencies, Caixin reports.
Overhauling the industry has become more urgent in recent months as China looks to further open up its capital markets to attract more foreign investors. The Chinese credit ratings industry is dominated by local companies that are notorious for handing out high ratings to undeserving firms.
Beijing will attempt to improve the situation by increasing government supervision over the ratings industry and unifying the regulation of bond ratings companies. A large part of the plan will depend on improved coordination between different regulatory bodies.