Recently, the People's Bank of China ("PBC") and the China Securities Regulatory Commission ("CSRC") have jointly issued the Announcement [2018] No.14.
The announcement specifies requirements in four respects. The first is promoting the gradual unification of rating business qualifications in the interbank bond market and the bond market of the exchange. The second is encouraging the consolidation of legal-person credit rating agencies ultimately controlled by the same party by market-oriented means, such as mergers and reorganization, with a view to better gathering together talents and technical resources and helping credit rating agencies grow stronger. The third is intensifying the oversight and administration of credit rating agencies and better sharing regulatory information in the credit rating industry. The fourth is requiring credit rating agencies to establish and improve the corporate governance mechanism and the internal control and business systems and take all necessary measures to ensure the quality of ratings. According to the announcement, a fast track will be established for mutually recognizing the rating business qualifications of credit rating agencies that have carried out the rating business in the interbank bond market or in the bond market of the exchange.