Journal of Money Laundering Control, Volume 18, Issue 1, January 2015.
Purpose The Chinese financial system has made many improvements; in particular, the regulatory regime has reached a more effective level. However, it should be admitted that some aspects still require further improvement. Compared with other developed markets, the Chinese credit rating industry is still young. Under these circumstances, questions are raised about what is the true performance of the CRAs in China? Whether the legal framework is effective enough or not? A further point, in terms of the development is, what are the major obstacles laying ahead for the Chinese CRAs? Design/methodology/approach This article will concentrate on the study of Chinese CRAs. Starting with a brief introduction and analysis on the Chinese CRAs, it will further examine the rating methodologies of the Chinese CRAs. Following this, the regulatory regimes will be analyzed in detail, from the perspectives of the securities, banking and insurance market respectively. Moreover, the paper will identify the key problems under the current regulatory regime. Last but not least, a conclusion and some future suggestions for the development of the regulatory regime will also be made based on the earlier observations and study. Findings The current development stage and future reform requirement of the Chinese credit rating industry. Originality/value Provide a full dimension and in depth analysis on the Chinese credit rating industry.
Purpose The Chinese financial system has made many improvements; in particular, the regulatory regime has reached a more effective level. However, it should be admitted that some aspects still require further improvement. Compared with other developed markets, the Chinese credit rating industry is still young. Under these circumstances, questions are raised about what is the true performance of the CRAs in China? Whether the legal framework is effective enough or not? A further point, in terms of the development is, what are the major obstacles laying ahead for the Chinese CRAs? Design/methodology/approach This article will concentrate on the study of Chinese CRAs. Starting with a brief introduction and analysis on the Chinese CRAs, it will further examine the rating methodologies of the Chinese CRAs. Following this, the regulatory regimes will be analyzed in detail, from the perspectives of the securities, banking and insurance market respectively. Moreover, the paper will identify the key problems under the current regulatory regime. Last but not least, a conclusion and some future suggestions for the development of the regulatory regime will also be made based on the earlier observations and study. Findings The current development stage and future reform requirement of the Chinese credit rating industry. Originality/value Provide a full dimension and in depth analysis on the Chinese credit rating industry.