Due to the close connection between credit assessment business (including business credit rating and business credit scoring) and basic credit investigation business, the drafting of the regulations has been considering that credit rating business can be included in a regulation. “Considering that there is a close link between credit reporting, credit scoring and credit rating, and the need for unified supervision of the credit investigation industry, the draft defines credit investigation business as including credit reports, credit scores and credit ratings, and brings credit reporting business, credit scoring business and credit rating business into the scope of management,” Provisions have been made on all aspects of information collection, sorting, preservation and processing in the credit investigation business.”
China’s credit rating industry remains fragmented, weak and difficult to access to international capital markets for a complex number of reasons, one of which is the fragmented regulation of the credit rating business with no primary responsibility. This makes the threshold and rules for the supervision of credit rating business in different financial markets are not uniform, and it is difficult to study and introduce policies to support the development and growth of domestic credit rating agencies. Therefore, when the regulation was drafted, it was originally a good opportunity to solve this long-standing problem by breaking the interests of departments in accordance with the objective requirements of unified supervision of the same industry. However, the strong interests of Chinese authorities, coupled with weak coordination and decision-making mechanisms, made those attempts to start with the harmonization of basic rules, such as the principle requirements for the establishment of mechanisms to prevent conflicts of interest in the rating business, after all, but a flash in the draft regulations. That’s a pity.
Post time: Dec-13-2023