S&P Global Gets China's Approval for Local Rating Business

The transcript discusses the PBOC's initiative to open China's market to global rating agencies, aiming to improve local rating quality and foster competition. It highlights the challenges in achieving immediate impact due to low fees and the need for credit differentiation in the domestic bond market. The discussion also covers the different rating scales used by SMP, Moody's, and Fitch, and the importance of defaults for market learning and discipline.

What promise did the PBOC deliver on regarding global rating agencies?

How does the lack of differentiation in credit ratings affect domestic investors in China?

What is the expected time horizon for the impact of international rating agencies on the Chinese market?

Why is the issue of defaults considered a problem in the Chinese market?

What are the implications of the promptness of reflecting risks in credit ratings?