China needs to urge local rating agencies to develop

Xinhua Beijing, June 9 (Xinhua Shu Xu Xu Xingdao) Europe's sovereign debt crisis is still continuing, the industry believes that the three major international rating agencies in the current crisis role should be deeply reflected.　　A number of experts interviewed by reporters said that China needs to strengthen the local rating agencies, but to achieve this goal is not a overnight work. Since the end of 2009, Moody's, Standard Poole and Fitch, the three major international rating agencies, have downgraded the sovereign credit ratings of Greece and other European countries. On April 27, standard Poole downgraded Greek sovereign debt to junk level. May 28, Fitch downgraded Spain's sovereign credit rating.　　Suffered a series of downgrades of the bad attack, the recent international futures, foreign exchange and stock markets, such as volatile market volatility, the euro against the United States dollar exchange rate continued to fall below the 1.2 dollar mark on 4th, a 4-year low.　　Warns Xiang Songzuo, deputy director of the International Monetary Institute of Renmin University of China, said in a video interview this week that the three major rating agencies have a strong position in the contemporary international financial system because they have a dominant pricing power over financial assets. Warns Xiang Songzuo that the three major rating agencies in the international financial assets pricing power in the monopoly position, because information asymmetry, individual investors, even institutional investors can only passively accept the rating agencies to give the price. "That's why the world is flat," Thomas Friedman, the author of the book, points out that there are two great powers in today's society: the United States and Moody's.　　"he said. Experts say the credit rating system, led by Moody's, Standard Poole and Fitch, has big flaws.　　Shao, director of the Tsinghua-Brookings Center for Public Policy Research, told reporters that credit rating is part of Western financial market system, Western financial market in the supervision, incentive and many other aspects are flawed, the credit rating system has the same deficiencies. Warns Xiang Songzuo pointed out that the three major rating agencies as for-profit organizations, the results are not completely objective and accurate. "The models used by rating agencies depend on certain assumptions, coefficients and other parameters." These parameters may be subjective and do not rule out the bias of some rating agencies in carrying out national sovereign credit ratings and corporate credit ratings.　　"he said. "This kind of absolute classification of A, B, C rating is flawed, it has a relatively strong subjectivity." If the credit ratings of all European countries are lowered by the three major agencies, investors will be overwhelmed.　　"Shao said.　　Warns Xiang Songzuo that the US-funded Moody's, Standard Poole and its headquarters in New York and London have downgraded their sovereign credit ratings in recent years, but it is not hard to see where the United States and the Heavily indebted UK, where the financial crisis originated, have not downgraded their ratings. Industry insiders said that, given the importance of the rating agencies in capital markets, China lacks the right to speak internationally, so it is also at a disadvantage in the pricing power of international capital markets. As early as 2003, for example, when China's 13 commercial banks sought to list overseas, their credit ratings were rated as garbageGarbage class.　　Therefore, we must understand the importance of credit rating from the level of national strategy, and actively cultivate the development of local rating agencies.　　It is reported that the three major international rating agencies occupy more than 60% of China's market share; Although China has a large number of local rating agencies, but the size of small, less experience, industry supervision is relatively weak, and in the integrity of many large rating agencies such as Moody's and other foreign-funded rating agencies equity participation.　　Jiang, director of the Center for Economic Security at the China Institute of Modern International Relations, told reporters that the world's three largest rating agencies have an important say in international capital markets, especially in the aftermath of the financial crisis, and the role of credit ratings in ensuring the financial stability and core interests of a country is becoming increasingly prominent.　　Experts also admitted that China's emerging local credit rating agencies and the century-old World's three largest rating agencies, there is a big gap.　　Warns Xiang Songzuo pointed out that, compared with the three major rating agencies, both in terms of experience and international visibility, China's local rating agencies are in the early stages of development, the overall level of Chinese financial market development and the United States also have a big gap. "The government should have long-term and comprehensive planning for the development of the financial market and the rating industry, and the development of the rating industry is inseparable from the mature and sound environment of China's financial market." But China's rating agencies also have the right to rank foreign companies ' creditworthiness and national sovereign credit.　　"he said. Shao said that while China can work with internationally renowned rating agencies to learn from its advanced experience, on the other hand, in the face of unfair rating results, it is possible to express legitimate demands through reasonable means.　　Countries around the world can use the G20 conference platform to strengthen the supervision of the rating agencies.　　Zhou Xiaochuan, governor of the People's Bank of China, said at a meeting of G20 finance ministers and central bank governors in Busan, South Korea, to strengthen the supervision of credit rating agencies, explore effective regulatory models and reduce reliance on external rating agencies. "This is not an overnight work, but the task of developing local rating agencies is imminent, of course, to achieve this goal can not be separated from a mature financial market environment, we need to gradually improve the corresponding legal, accounting and other supporting systems." "Shao said.