We need to have their financial referees

 We need to have their financial credit rating referee
mm about the impact on the financial
sovereign credit rating of the main function is the collection of information through the integration of risk to be measured, thus reducing the problem of asymmetric information market its effect on the flow of funds have a guidance role. Therefore, in the West, the credit rating agencies have a market , and its development has been a hundred years of history, it is precisely because of its profound understanding of the status of credit ratings in recent years has increased the credit rating market penetration in China, our market share in the third world is with the other. At present, the development of the credit rating market is still in its infancy, the market performance of small, non-standard rating criteria, personnel shortages and technology is relatively backward in the face of the challenges of foreign rating agencies, some powerless. As Therefore, the development of their own ideas are bound with a country's financial sovereignty will have a major impact. in our credit rating market is gradually controlled by the same time, China's financial sovereignty, the challenges are increasingly being clearly apparent. if he did not be concerned , without our financial referee, that our financial strength will be a great challenge.
a credit rating related to our financial sovereignty
Overall, the credit rating major impact on the financial performance of sovereignty the following aspects:
1. dominance of the domestic financial market pricing
the effectiveness of the financial markets, capital allocation efficiency or not mainly, the main dependent on the speed of information transmission and authenticity. in the real financial environment, information asymmetries are widespread in any case, the credit rating agencies to resolve information asymmetry is an intermediary body, the body of information on the market to collect and evaluate, given the main credit rating is a synthesis of the information on the market reflected as a financial referee, the play is essentially an indirect function of market resources allocation. corporate financing costs, investment decisions of investors and so the measure of risk can not be separated, but the real credit rating and the rating is based on the credibility of its own technology for the enterprise as collateral, to reduce investment risk, to meet the needs of corporate finance, to provide investors with investment direction, the end result is that companies with high credit ratings lower the cost of obtaining financing, financing more easily, whereas the more credit rating low, higher financing costs will ultimately affect the value of bonds and stocks to determine the prices of financial products. For example, China's commercial banks, the introduction of strategic investors, the intention is to improve the bank's internal corporate governance structure, but due to the credit rating is was deliberately kept low to improve the financing costs, part of the IPO had a big let foreign institutions watermelon. Meanwhile, the credit rating not only for corporate finance services, but also for enterprise risk management based on reality. Finance The role of the market is that the horizontal spread risk, credit risk rating is the standard instructions, standard error will increase the risk to the U.S. These actions extend to the macro, that is, the pricing of financial products, credit rating by the price level is equivalent to the division of financial products. a country for their own lack of initiative in the pricing of financial products, not only is not conducive to the development of their own market players, misjudged the credit ratings that led to underestimate or overestimate the value of any loss suffered thereby constraining the space for survival and development, more important point is not conducive to the healthy growth of domestic financial markets, and bring the low efficiency of information transmission is the market deformity caused by the mismatch of resources for the development of the national economy has a greater negative impact. Therefore, the credit rating of the dominance of the domestic financial market is not just commercial banks in China caused by the loss of undervalued , while the pricing initiative brought about by the loss of the weak foundation of the financial system needs more attention. to make a simple analogy is that no matter how good you are playing football, the referee injustice, your fighting will be greatly reduced.
2.
the independence of national regulators in China's financial regulators draw current credit rating information for decision-making is still very small, but that does not mean that the credit rating on China's financial regulation does not have an impact. a developed market economy is the need to meet the changing market environment, which will need to monitor the development of the market norms and track time. China's financial market development is not yet perfect, the more single-level, relying on self-regulatory bodies are still able to meet the needs of the market. But with the continuing reform of China's financial markets, the gradual establishment of the financial system, the need for financial market risks inherent in the supervision and timely disclosure of information, simply relying on the ability of regulatory agencies themselves is very difficult to completely standardize the market behavior . Therefore, the regulatory body will naturally seek more or less information to the credit rating of the market subject to regulation. At the same time, there are many rules and regulations are the result of relying on credit ratings to be determined, such as money market funds may not invest in AAA Grade The following corporate bonds, and credit rating is again given the credit rating agencies, which further affects its regulatory decision-making. an independent regulator is one of country's financial sovereignty, and in view of a country's credit rating the impact of regulatory decisions, the credit rating by foreign agencies, under the influence, effectiveness and independence of financial supervision will be constrained by foreign.
3. related to the stability of financial markets and national economic security
If that the financial market is a barometer of a country, then the credit rating market, a barometer can be called only on the scale. scale the size of the well-being reflects the degree of financial market. The higher a country's sovereign credit rating, indicating that the country's economic development prospects for the better, to attract more capital inflows. The lower the credit rating of .97 will result in capital outflows during the Asian financial crisis to some extent, the credit rating agencies is the the right to speak because credit rating credit rating agencies lies in the hands of the United States, its credit rating after the sudden reduction of further deterioration of the crisis situation, leading to large capital outflows, making the crisis in the country's entire financial system has suffered a huge impact. recent Greek crisis gave us a good inspiration, Goldman Sachs makes the use of credit rating agencies reduced the power of the Greek sovereign risk rating, the financial crisis deepened in Greece to improve the hands of the credit default swap products, prices, access to more lucrative return. These are all details of the credit rating agencies in the absence of an objective assessment of financial stability when the scale of the negative impact. Even if the U.S. credit rating agency will compare the initial objective of a country's sovereign credit rating to rating, in fact, it also had to follow certain rules of the game, even if it is not fully complied with, but the most important is not the initial credit rating agencies to give high and low level, but little sign of trouble when a country's economy, its too early lower credit rating, or a country's economy has entered a crisis stage and the lower the credit rating too late, this is the rating agencies on a country's financial deterioration of the environment play a role in fueling the primary means. The result is caused by the mass panic lead to irrational capital flows, the market is not conducive to the stable development of a country. So, in the hands of the credit rating of the initiative remains with the ideology of the hands of its country rating, the stability of financial markets itself as a potential development instability.
4. on the Internationalization of China's economic future challenges
continuous development and growth necessarily requires the support of an international currency, can be said that the internationalization of RMB is a trend in the future. But , requires a high degree of internationalization of the RMB and open financial markets and floating exchange rate system. In the floating exchange rate regime, the RMB exchange rate depends on the level of prices the market supply and demand, which supply mainly depends on the game and the market environment of a country good or bad and that is the main micro-companies can bring our rate of return, as mentioned above, that is, a country's financial market stability and financial products or prices. credit rating in the case of two natural can the movement of the RMB exchange rate plays a leading role, making the price of the RMB in the future in a more passive position. At the same time as the hard currency to the yuan needs to maintain currency stability, foreign rating agencies by the constraints in the case of , in order to maintain currency stability, and reduce the impact of external price of money will increase the difficulty of adjusting monetary policy.
visible, not just an ordinary credit rating agencies, which occupy the commanding heights of the financial markets. China From a strategic point of view should be to examine the credit rating of the current market conditions, due to take appropriate measures to cultivate our own financial referee, to maintain financial independence and full sovereignty.
Second, to our credit rating market development proposals
1. to solve the credit rating of the market needs of
to prevent foreign control of credit rating agencies, credit rating market is of key domestic credit rating companies grow and develop. In addition to cultivating their own credit rating conducive to the maintenance of financial sovereignty, Another point is that the domestic credit rating agencies to better understand the domestic situation, China can be a more realistic reflection of the risk. of course, learn from foreign experience, such as Japan, India, Korea, Russia, through the development of related laws and regulations on foreign rating companies to restrict access and dual rating, so as to protect their credit rating companies, these measures are necessary and important, but we also need more attention to China's financial market construction. to go out of our enterprises and the internationalization of the RMB will need world-class domestic rating agencies to maintain reasonable interest, confined to their own, relying on national authorities to protect the credit rating market is imperfect, our credit rating institutions into the international market is difficult.
current lack of demand in China is to limit the credit rating credit rating of the main factors for market development, credit rating agencies to the lack of innovative power, the lack of competitiveness. The bond market is the credit rating market development based on the development of Moody's first came from the bond rating of the railway. but our situation is, corporate bonds, short-term financing instruments, policy bonds, medium-term notes, etc. by the various agencies in charge of one hand over administrative control strong credit rating is difficult to effectively play the role of the other long to bring the standards of regulatory inconsistencies make it difficult for the credit rating is not conducive to the norms and consistent rating standards, and supervision of enterprises due to the long bond's poor distribution channels, credit rating would also adversely affect the development. In addition, interest rates have not yet fully market-oriented development also makes it difficult bond market into full play, the credit rating is not naturally a free hand. Therefore, to enhance the competitiveness of our rating agencies First, bond markets need to expand the pie, on the one hand unified supervision, on the other hand the control of credit markets gradually open up to further promote the marketization of interest rates, which can expand the effective demand for credit rating, credit rating agencies to ensure that our has a good environment for the growth. Second, from the current actual situation, the domestic rating agencies to give appropriate policy support, dual rating, that credit rating requires at least two rating agencies, while domestic companies control at least one rating agency, after a good choice. One is still in the infant helps to protect the rating of the industry. Second, the dispute will reduce the economic, but also to enhance our sense of competition in the credit rating agencies. In addition, cultivate a good market players credit character is one of the conditions of expanding demand.
short, only the development of financial markets made considerable progress in our country's credit rating can make a real competitive, so to better serve the country's financial economy development.
2. deal with regulation and the relationship between credit rating credit rating
role in the financial markets to solve the information asymmetry, but only a real and effective ratings can reflect the status of market players. times credit crisis can be said to be a credit crisis, credit rating agencies in the outbreak of the crisis played an integral role, precisely because of its financial derivatives are not full of risk assessment, resulting in flooding of the market information for the outbreak of the crisis potential problems. Thus, the credit rating agencies, information is not very effective. China's current credit ratings market, although in its infancy, but the most favorable factor is that China can more effectively shape the credit rating system. the sub-prime crisis, the U.S. and Europe have said that to strengthen supervision of credit rating and take the related actions, the reason is that credit ratings have been running throughout the financial markets play a regulatory role of the information base, many American regulatory regulatory agencies have adopted the commercial credit rating agencies provide credit ratings, making it largely relies on its to regulate, so that increased market risk. developed market economy requires self-discipline of the market itself , the regulatory body to draw on the results of the credit rating is also necessary to solve market failures, but it does not mean credit rating is to monitor their own part of the content should be regulated. Just as the referee referees themselves need to follow the rules, we can not that refereeing decisions, and we completely as a basis for the neglect of the authenticity of the results. In addition, to improve the existing regulatory regime for credit rating, unified supervision, to reduce regulatory overlap and improve the efficiency of supervision on the one hand to promote the domestic credit rating market development, it also can reduce market risk.
3. the development of national standards and to enhance the credit rating credit rating credit rating process understanding
Although with a certain mathematical model, but still can not get rid of the subjective factors impact. and the inconsistency of foreign and domestic environment, different indicators of credit rating, the rating results will be different, investors, credit rating and can not read the specific information to compare the results of the various rating agencies. so the development of a certain rating criteria and norms are necessary, this can be more effective transmission of market information, the real play of the warning, the market itself help to reduce the credit rating impact of the financial markets and maintain financial market stability. Meanwhile, the development of our country ; game rules a clear understanding of our financial sovereignty is otherwise difficult to effectively maintain.
In short, the credit rating of a country's financial system has played an irreplaceable role. perfect financial markets, economic development requires a stable financial system , business development and strategic needs of China are also inseparable from the support of the internationalization of the RMB. can be seen, some on their role as a financial referee, the lack of impartiality of the judge, do not have the credit rating of the right to speak, China's financial market system is support of national credit rating agencies, and more need to constantly improve the financial system. in our underdeveloped financial market circumstances, the credit ratings market to coordinate with development, can be neglected, but also clear the role of credit rating market, and ultimately improve the competitiveness rating industry to maintain a reasonable credit rating of China, to ensure the independence of financial sovereignty.