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Anonymous ID: bc6902 Jan. 15, 2020, 12:59 p.m. No.7823034   🗄️.is đź”—kun   >>3159 >>3347 >>3446 >>3575 >>3652

U.S. Bond Raters Win More Access to China’s $14 Trillion Market

 

The agreement means debt graders such as Moody’s Corp. can join S&P Global Inc. in rating debt in China’s 95 trillion yuan ($14 trillion) bond market as part of a deal on financial services. “China commits that it shall continue to allow U.S. service suppliers, including wholly U.S.-owned credit rating services suppliers, to rate all types of domestic bonds sold to domestic and international investors,” according to the text of a trade agreement signed Wednesday in Washington. Moody’s Chief Executive Officer Raymond McDaniel participated in the ceremony.

 

The move shows progress in China’s promise nearly three years ago to open the door for overseas ratings firm as a way to speed up reform and foster competition. S&P last year became the first wholly owned international firm to rate domestic bonds, while Moody’s efforts to expand its onshore presence were held up. The first phase of the trade deal signed by Vice Premier Liu He and President Donald Trump commits China to accelerate its planned opening of its $21 trillion capital market by eight months, swinging the door open for global investment banks. Wall Street will be allowed to apply to form fully owned units to do a broad array of investment banking and securities dealing in the Communist Party-ruled nation.China has over the past two years embarked on an unprecedented policy of leveling the playing field for international finance. But despite rule changes, including allowing majority stakes in domestic joint ventures, foreign entities say they still face hidden barriers such as lengthy and opaque regulatory approval process as they try to gain increased access to the market.

 

Moody’s shelved a plan last year to take control of China Chengxin International Credit Rating Co., the nation’s largest ratings company, amid regulatory inaction and U.S.-China trade tensions, people familiar with the matter said. Its application for a wholly owned unit wasn’t approved either.

https://www.bloomberg.com//news/articles/2020-01-15/u-s-bond-raters-win-more-access-to-china-s-14-trillion-market

 

what could go wrong with giving the credit ratings agency(s) access to $14t worth of "products" again?…..:/