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China Chengxin Credit Rating Group

China Chengxin Credit Rating Group was founded in Beijing on 8 October 1992 through the incorporation of China Chengxin Credit Management Co Ltd (renamed as China Chengxin Credit Management Co. Ltd. in 2002),[1] which is the first nationwide credit rating company of China.[3] Subsequently, it formed subsidiaries and established branches across China, including China Chengxin International Credit Rating Company Limited (the joint venture credit rating company among China Chengxin Securities Rating Company Limited, Fitch Ratings and International Finance Corporation established in 1999).[4] The share-holder structure of the joint venture company was changed in 2006 when Moody’s came in to take over the equity positions of Fitch and the supranational institution.[5] The company is one of the few major credit rating agencies currently operating in China.[6]

China Chengxin Credit Rating Group
IndustryBond credit ratings
Founded1992[1]
Headquarters,
Key people
Dr. MAO Zhenhua (Chairman)[2]
WebsiteChina Chengxin Group
China Chengxin International
China Chengxin Securities Rating
China Chengxin Asia Pacific

China Chengxin Credit Management Co. Ltd. went to Hong Kong to set up its subsidiary, China Chengxin (Asia Pacific) Credit Ratings Company Limited, which received the Type Ten License from Hong Kong Securities and Futures Commission on 28 June 2012, thus became the first Chinese credit rating company going out of the Chinese mainland to do credit rating business in the international capital markets.[7]

China Chengxin Credit Rating Group has branches and subsidiaries operating in Beijing, Shanghai, Hong Kong, Shenzhen, Fujian, Wuhan, Shandong, Liaoning, Tianjin, Jiangsu, Zhejiang, Shanxi and Shaanxi.[8]

HistoryEdit

1992–1999: Founding Period

In 1992, encouraged by the talks of the then Chinese leader Deng Xiaoping during his tour to the southern China, MAO Zhenhua, like many young people of China, started his private venture to form a credit rating company.[9] Upon the approval given by People’s Bank of China, MAO was successful in establishing the first Chinese credit rating company, China Chengxin Securities Credit Rating Company Limited under the Chinese corporation rules and regulations.[1]

The company worked out the first set of credit rating system and methodology in China, which was assessed and accredited by the group of experts from the Finance and Economic Committee and Law Committee under the People’s Congress, People’s Bank of China, National Planning Commission, banks and securities house.[citation needed]

1999–2005 Take-off Period

As the Chinese capital markets had just started growing, IFC, an agencies of World Bank Group, made efforts to help the Chinese capital markets to develop, including the establishment of an effective and efficient credit rating industry. After several years’ endeavour, this supranational institution succeeded in pulling together China Chengxin Securities Credit Rating Company, Fitch IBCA (now Fitch Ratings) and itself to form China’s first credit rating joint venture company, China Chengxin International Credit Rating Company Limited in August 1999.[4] In July 2004, Fitch divested from the joint venture company to align with its global strategy of securing majority control over the overseas subsidiaries.[10]

2006–2011 Advancing Period

The Chinese capital markets were further reformed in 2005, leading to the fast development of the debt market. Moody’s moved in to buy up to the regulatory cap of 49% share of China Chengxin International Credit Rating Company Limited from the local share-holders in September 2006. Moody's added additional management and technical support on rating methodologies and training of analysts to the joint venture company.[11]

China Chengxin Securities Credit Rating Company Limited was renamed as China Chengxin Credit Management Company Limited to turn it into a holding company of all subsidiaries and branches formed or to be formed.Subsequently, China Chengxin Credit Rating Management Company Limited has subsidiaries and branches providing credit rating services in Beijing, Shanghai, Hong Kong, Shenzhen, Fujian, Wuhan, Shandong, Liaoning, Tianjin, Jiangsu, Zhejiang and Shanxi.

Owing to its first comer status and expertise acquired from the two international credit rating agencies, respectively. The China Chengxin Credit Rating Group can always capture the largest overall market share in the domestic market.[citation needed]

2012– Going out

Following the trend of internationalization of the Chinese currency, China Chengxin Credit Management Company Limited established its subsidiary in Hong Kong, China Chengxin (Asia Pacific) Credit Ratings Company Limited, which received the Type Ten License from Hong Kong Securities and Futures Commission on 28 June 2012, thus became the first Chinese credit rating company going out of the Chinese mainland to do credit rating business in the international capital markets.[12]

China Chengxin (Asia Pacific)Edit

On 28 June 2012, China Chengxin (Asia Pacific) Credit Ratings Company Limited (“CCXAP”) was successful in applying for the type ten operating licence from Hong Kong Securities and Futures Commission, thus, became the first licensed Chinese credit rating agency to operate in the international credit rating market.

Regulatory approval and membershipEdit

China Chengxin Credit Rating Groups' subsidies and branches obtained license from all the regulators in China such as People's Bank of China, China Insurance Regulatory Commission, National Development and Reform Commission and China Securities Regulatory Commission.

China

Hong Kong

  • 2012 SFC Type 10: Providing credit rating services[17]

Sovereign Credit RatingEdit

China Chengxin Credit Rating Group through China Chengxin International Credit Rating Company Limited released its sovereign credit rating report for 30 countries in July 2012, as follows:.[18]

Country Rating Outlook Date Ref.
  Argentina 05CCCg Negative 2014-07 [19]
  Australia 19AAAg Stable 2012-07 [19]
  Brazil 12BBBg+ Stable 2012-07 [19]
  Canada 19AAAg+ Stable 2012-07 [19]
  China 17AAg+ Stable 2012-07 [19]
  Denmark 17AAg+ Stable 2012-07 [19]
  France 16AAg Stable 2012-07 [19]
  Germany 17AAg+ Stable 2012-07 [19]
  Greece 01CCCg Stable 2014-04 [19]
  India 11BBBg Stable 2012-07 [19]
  Indonesia 10BBBg- Stable 2012-07 [19]
  Ireland 10BBBg- Negative 2012-07 [19]
  Italy 11BBBg Stable 2013-03 [20]
  Japan 18AAg+ Stable 2012-07 [19]
  Mexico 12BBBg+ Stable 2012-07 [19]
  Netherlands 18AAg+ Stable 2012-07 [19]
  Norway 19AAAg Stable 2012-07 [19]
  Portugal 07BBg- Negative 2012-07 [19]
  Russia 14Ag Stable 2012-07 [19]
  Saudi Arabia 18AAg+ Stable 2013-07 [19]
  Singapore 19AAAg Stable 2013-07 [19]
  South Africa 14Ag Stable 2013-07 [19]
  South Korea 16AAg- Stable 2013-07 [19]
  Spain 09BBg+ Negative 2013-03 [21]
   Switzerland 19AAAg+ Stable 2012-07 [19]
  Thailand 12BBBg+ Stable 2012-07 [19]
  Turkey 08BBg Stable 2012-07 [19]
  United Kingdom 18AAg+ Stable 2013-03 [22]
  United States of America 19AAAg Stable 2012-07 [19]

ReferencesEdit

  1. ^ a b c Benton E. Gup (20 July 2006). Capital Markets, Globalization, and Economic Development. Springer. pp. 200–. ISBN 978-0-387-24563-8. Retrieved 2 August 2013.
  2. ^ "China Chengxin Corp Website".
  3. ^ Katie Hunt (31 October 2012). "China ratings firms challenge US dominance". BBC.
  4. ^ a b "Fitch IBCA Announces Rating Joint Venture in Beijing". Fitch IBCA. Retrieved 11 April 2013.
  5. ^ Moody's Corp. "CCXI".
  6. ^ K. Thomas Liaw (1 November 2011). The Business of Investment Banking: A Comprehensive Overview. John Wiley & Sons. p. 352. ISBN 978-1-118-00449-4. Retrieved 2 August 2013.
  7. ^ >"Hong Kong's role as China's global financial centre attracts China Chengxin credit rating company to set up". InvestHK. 31 July 2012. Archived from the original on 30 December 2013. Retrieved 30 December 2013.
  8. ^ "分支机构". CCX. Archived from the original on 22 August 2015. Retrieved 2 Aug 2013.
  9. ^ "92派官員下海20年盤點:有人成富豪有人被判刑". Takungpag. Retrieved 15 Aug 2013.
  10. ^ "Fitch Ratings Announces Divestment of China Chengxin International Credit Rating Co". Fitch IBCA. Retrieved 2 Aug 2013.
  11. ^ "Moody's acquires 49 pct stake in Chinese rating agency". People Daily. Retrieved 11 April 2013.
  12. ^ "Hong Kong's role as China's global financial centre attracts China Chengxin credit rating company to set up (with photo)". Hong Kong Government News. Retrieved 3 April 2013.
  13. ^ a b c d "脆弱的评级". Finance World. Jan 2012. Archived from the original on 22 January 2013. Retrieved 19 April 2013.
  14. ^ "中国证券监督管理委员会关于核准中诚信证券评估有限公司从事证券市场资信评级业务的批复". 教育频道. Archived from the original on 30 December 2013. Retrieved 19 April 2013.
  15. ^ "证券评级机构信息公示". SAC. Retrieved 19 April 2013.[permanent dead link]
  16. ^ 中介机构>评级机构>"会员分类>中介机构>评级机构". NAFMII. Archived from the original on 5 February 2013. Retrieved 19 April 2013.
  17. ^ "Public Register of Licensed Persons and Registered Institutions". SFC. Retrieved 19 April 2013.
  18. ^ Jia, Chen (2012-08-01). "Mainland credit rating agency opens HK arm". China Daily. Retrieved 19 April 2013.
  19. ^ a b c d e f g h i j k l m n o p q r s t u v w x y z "中诚信国际信用评级有限责任公司". Ccxi.com.cn. 2012-08-15. Archived from the original on 2014-01-03. Retrieved 2014-01-05.
  20. ^ "中诚信国际:意大利政治不确定性对其主权信用带来负面影响". 中诚信国际. Archived from the original on 25 April 2013. Retrieved 19 April 2013.
  21. ^ "中诚信国际:西班牙主权评级维持BBg+,评级展望由稳定调为负面". 中诚信国际. Archived from the original on 25 April 2013. Retrieved 19 April 2013.
  22. ^ "中诚信国际:下调英国主权评级至AAg+,评级展望为稳定". 中诚信国际. Archived from the original on 25 April 2013. Retrieved 19 April 2013.