Tag Archives: credit rating agencies

Western Rating Agencies Allowed to Set Up in China

Editor’s Note: 

Over at the blog Law at the End of the Day, in a recent post 1 Larry Catà Backer observed how to “understand the construction of social credit in China one must look to patterns of” rules on FDIs relevant to credit investigation and rating services. A fundamental text, in this respect, is  Announcement No. 1 [2016] (available below) on foreign invested credit rating agencies.

The post further discussed how in China’s 2017 Catalogue for the Guidance of Foreign Invested Industries credit investigation and rating services have been moved from the ‘restricted’ to the ‘permitted’ category. The change in status of credit investigation and rating services has been in the making for quite some time.

The existing regulatory framework on credit rating makes only scant references to foreign invested credit rating services 2 Also, as it is well known, the 2015 People’s Bank of China Notice on Performing Well the Preparatory Work for the Credit Reporting Industry had delegated the task to construct the consumer credit rating industry to eight domestic agencies.

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Non-EU Credit Rating Agencies: List of Endorsements and Equivalence Decisions

Under Regulation (EC) No. 1060/2009 of 16 September 2009 and its subsequent amendments, credit rating agencies (CRAs) established outside the European Union can have their ratings recognized and used in the Union through:

  • endorsement, provided they comply with requirements as stringent as those set by the EU regulatory framework on CRAs, or

  • certification. This procedure is dependent upon an European Commission’s decision on the equivalence of third countries’ regulatory and supervisory regimes, and on the existence of a cooperation agreement between competent authorities in third countries and ESMA.

The following is a list of countries for which ESMA has assessed that their regulatory regime is as stringent as the EU regime, and countries for which the European Commission has adopted an equivalence decision.


EndorsementsEquivalence Decisions
Hong KongHong Kong
South AfricaUnited States of America
United States of America
Source: ESMA Official Website