A Study On The Effectiveness Of Credit Rating In China's Bond Market

After 33 years of rapid development,in China's financial market,the bond market is an important part of it,and the trading subjects and transaction scale continue to increase.In this economic environment,whether the credit rating is important for maintaining the order of the bond market or protecting the interests of investors.This paper systematically sorts out the history of the credit rating development of the bond market and makes a summary of the development of the credit rating of China's bond market.In order to effectively reflect the effectiveness of the credit rating of China's bond market,five bond default companies were selected as case study objects to analyze their bond defaults and whether the relevant credit ratings were effective.Evaluate the effectiveness from the following three aspects:(1)The accuracy of the credit rating refers to whether the financial indicators correspond to the rating standards and whether the rating can accurately reflect the bond risk.The Z value is used to evaluate the accuracy of the credit rating.Low and high ratings indicate that there are certain problems with the credit rating;(2)Timeliness of the credit rating refers to whether it pays attention to the timeliness of the data and whether the credit rating is adjusted in time;(3)Prospective of the credit rating refers to whether the future development is predicted in advance Whether trends and future situation forecasts are reflected in the rating outlook.At present,there is a false high phenomenon in the credit rating of China's bond market,and some ratings are lagging,which cannot effectively reveal the risks.China's credit rating business has improved the transparency of corporate credit,provided credit information to the society,and increased the speed of information dissemination.However,it is worth noting that the competition in the rating market is disorderly and the industry self-regulation is not satisfactory.The fundamental reason is the payment model and regulatory factors.After the above analysis,combined with the actual situation of China's rating agencies,the corresponding countermeasures are given as follows:from the driving force,the charging system is improved,the form of payment is improved,and the infrastructure of the rating agency is improved;from the binding point of view,strengthening supervision and unified standards,Improve the effectiveness of credit ratings.