China Securities Regulatory Commission, Tentative Measures for the Administration of Credit Rating Business Pertaining to the Securities Market

中国证券监督管理委员会证券市场资信评级业务管理暂行办法

October 02, 2007 | BY

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Credit rating agencies engaging in securities rating required to have Chinese legal personality.

Clp Reference: 3700/07.08.24 Promulgated: 2007-08-24 Effective: 2007-09-01

Promulgated: August 24 2007
Effective: September 1 2007

Applicability: The term "securities rating business" refers to credit rating conducted on the following targets:

(1) bonds, asset-backed securities and other structured finance securities with fixed returns or of debt type that are offered upon check and approval of the China Securities Regulatory Commission in accordance with the law;

(2) bonds, asset-backed securities and other structured finance securities with fixed returns or of debt type that are listed and traded on a stock exchange, except for sovereign bonds; and

(3) issuers, listed companies, unlisted public companies, securities companies and securities investment fund management companies for the securities stipulated in Items (1) and (2) above (Article 2).

Credit rating activities relating to futures that are conducted by credit rating agencies shall, mutatis mutandis, be handled in accordance with these Measures (Article 42).

Main Contents: To apply for a securities rating business permit, a credit rating agency shall fulfil the following criteria:

(1) has Chinese legal personality, and both its paid up capital and net assets are no less than Rmb20 million;

(2) has at least three members of senior management personnel and 20 credit rating practitioners with securities practitioners' qualifications complying with the requirements of these Measures, including at least 10 credit rating practitioners with at least three years of experience in credit rating, and at least three credit rating practitioners with certified public accountant qualifications of China.

Overseas individuals assuming senior management positions in securities rating at credit rating agencies shall have worked in China, Hong Kong or Macao for no less than three years (Article 8).

Related Legislation: PRC Securities Law (Amended), Oct 27 2005, CLP 2006 No.1 p.31

clp reference:3700/07.08.24promulgated:2007-08-24effective:2007-09-01

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