LOL, this looks like typical communist China pridefulness and face saving SOP. This is just like the Trump boasts about everything is "the best"... Looks like they are in for a risk of creating a massive bubble; however, their markets are already down for the year and foreign investors will already be wary and automatically downgrade Chinese firms with questionable ratings. The Chinese citizens who the gov't is trying to push into the stock markets are the ones who will suffer the most - IMHO.


https://www.wsj.com/articles/off-the-sca...1536232943

Quote:S&P Global Inc. is developing a custom credit-rating scale for China that will likely mean more triple-A’s, worrying investors about inflated grades.

The credit-rating company, which is setting up an independent business in China, recently said it will tailor a system for rating bonds from businesses, local governments and other issuers there.

“We believe that considering the size, dimensions and extent of diversification of China’s domestic capital market, there needs to be a set of special rating standards and rating methodology that fit the local situation,” S&P said in a document written in Chinese.

One result, though, is that a triple-A rating from S&P in China won’t be equivalent to a triple-A in the U.S. or other developed markets.

“If the ratings show little credit differentiation and do not reflect true credit risks, then investors will not give much credence to them,” said Prashant Singh, an emerging-markets portfolio manager of debt at Neuberger Berman.

An S&P spokesman said the company has no additional comments on its plans for China, where its global rivals Moody’s Investors Service and Fitch Ratings are also applying for licenses. Until last year, the three were restricted from operating independently there.

(09-06-2018 08:50 AM)miko33 Wrote:  LOL, this looks like typical communist China pridefulness and face saving SOP. This is just like the Trump boasts about everything is "the best"... Looks like they are in for a risk of creating a massive bubble; however, their markets are already down for the year and foreign investors will already be wary and automatically downgrade Chinese firms with questionable ratings. The Chinese citizens who the gov't is trying to push into the stock markets are the ones who will suffer the most - IMHO.


https://www.wsj.com/articles/off-the-sca...1536232943

Quote:S&P Global Inc. is developing a custom credit-rating scale for China that will likely mean more triple-A’s, worrying investors about inflated grades.

The credit-rating company, which is setting up an independent business in China, recently said it will tailor a system for rating bonds from businesses, local governments and other issuers there.

“We believe that considering the size, dimensions and extent of diversification of China’s domestic capital market, there needs to be a set of special rating standards and rating methodology that fit the local situation,” S&P said in a document written in Chinese.

One result, though, is that a triple-A rating from S&P in China won’t be equivalent to a triple-A in the U.S. or other developed markets.

“If the ratings show little credit differentiation and do not reflect true credit risks, then investors will not give much credence to them,” said Prashant Singh, an emerging-markets portfolio manager of debt at Neuberger Berman.

An S&P spokesman said the company has no additional comments on its plans for China, where its global rivals Moody’s Investors Service and Fitch Ratings are also applying for licenses. Until last year, the three were restricted from operating independently there.

Their currency, and that of most of the developing nations, was down 20% this morning. The heat is definitely being ratcheted up. If that results in new trade deals that's wonderful. If it doesn't it could result in something much much worse.

(09-06-2018 09:28 PM)JRsec Wrote:  

(09-06-2018 08:50 AM)miko33 Wrote:  LOL, this looks like typical communist China pridefulness and face saving SOP. This is just like the Trump boasts about everything is "the best"... Looks like they are in for a risk of creating a massive bubble; however, their markets are already down for the year and foreign investors will already be wary and automatically downgrade Chinese firms with questionable ratings. The Chinese citizens who the gov't is trying to push into the stock markets are the ones who will suffer the most - IMHO.


https://www.wsj.com/articles/off-the-sca...1536232943

Quote:S&P Global Inc. is developing a custom credit-rating scale for China that will likely mean more triple-A’s, worrying investors about inflated grades.

The credit-rating company, which is setting up an independent business in China, recently said it will tailor a system for rating bonds from businesses, local governments and other issuers there.

“We believe that considering the size, dimensions and extent of diversification of China’s domestic capital market, there needs to be a set of special rating standards and rating methodology that fit the local situation,” S&P said in a document written in Chinese.

One result, though, is that a triple-A rating from S&P in China won’t be equivalent to a triple-A in the U.S. or other developed markets.

“If the ratings show little credit differentiation and do not reflect true credit risks, then investors will not give much credence to them,” said Prashant Singh, an emerging-markets portfolio manager of debt at Neuberger Berman.

An S&P spokesman said the company has no additional comments on its plans for China, where its global rivals Moody’s Investors Service and Fitch Ratings are also applying for licenses. Until last year, the three were restricted from operating independently there.

Their currency, and that of most of the developing nations, was down 20% this morning. The heat is definitely being ratcheted up. If that results in new trade deals that's wonderful. If it doesn't it could result in something much much worse.

Read an article claiming Nike was illegally, with cooperation from the Chinese, using North Korean sweatshops to make their shoes. Google is working on censoring mechanisms for the Chinese market.

For all the blubbering about their moral behavior, its all about the Benjamins and these hypocrites are worse than most companies.