1/5
It is easy to make fun of Chinese bond-rating agencies (and most people do) as suffering from “flawed methodology, conflicts of interest, and corruption”, but, as Caixin points out, while these have all played a role in the industry’s...
caixinglobal.com/2021-01-22/in-…
It is easy to make fun of Chinese bond-rating agencies (and most people do) as suffering from “flawed methodology, conflicts of interest, and corruption”, but, as Caixin points out, while these have all played a role in the industry’s...
caixinglobal.com/2021-01-22/in-…
2/5
misadventures, “structural problems in the bond market itself, including regulator meddling, are just as responsible for China’s ratings woes”.
I think this is absolutely correct. In China even the best and most objective rating agency would have to struggle with the...
misadventures, “structural problems in the bond market itself, including regulator meddling, are just as responsible for China’s ratings woes”.
I think this is absolutely correct. In China even the best and most objective rating agency would have to struggle with the...
3/5
implications of government insistence on growth rates higher than the economy can productively and sustainably bear. In that kind of system, credit quality must necessarily deteriorate, and an individual credit rating must often be based on nothing more than speculation...
implications of government insistence on growth rates higher than the economy can productively and sustainably bear. In that kind of system, credit quality must necessarily deteriorate, and an individual credit rating must often be based on nothing more than speculation...
4/5
about the willingness and ability of local governments to support the credit. Because this largely reflects political contingencies current at the time, it isn’t at all surprising that rock-solid credit ratings can so suddenly and quickly deteriorate.
about the willingness and ability of local governments to support the credit. Because this largely reflects political contingencies current at the time, it isn’t at all surprising that rock-solid credit ratings can so suddenly and quickly deteriorate.
5/5
But fines, public criticisms, wrist slaps, and even jail time won’t help. I have long argued that like with many of China’s other debt-related problems, this cannot be fixed without fundamentally changing the country’s growth model.
But fines, public criticisms, wrist slaps, and even jail time won’t help. I have long argued that like with many of China’s other debt-related problems, this cannot be fixed without fundamentally changing the country’s growth model.
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