China may establish government-backed credit rating companies in an effort to decrease reliance on foreign credit rating companies, said central bank governor Zhou Xiaochuan, Bloomberg reported. In a speech on Sunday, Mr. Zhou also said domestic financial institutions should improve their research capabilities to make their own judgements of creditworthiness. The comments reflect China’s skepticism of the independence of the top-three global rating agencies’ independence. China established its first rating agency last year, China Credit Rating Co. “With the rapid expansion in China’s bond market, we need rating companies that are familiar with the Chinese situation,” said Lu Zhengwei, chief economist at Industrial Bank. Domestic rating firms could play an important role in researching local government finances, an area where foreign agencies have little expertise, Zhou said. The central bank is designated to regulate domestic credit rating companies, making it the only regulator in the industry.