Perfection Of Legal Supervision Mechanism Of Credit Rating Agencies In China

From the perspective of financial market,the information asymmetry issue between the issuer and the investor has always been regarded as an important factor affecting the operating efficiency of the financial market.The proposal of credit rating agencies has alleviated this problem in an effective way,which has improved the efficiency of the financial market.However,in the issuer payment model,credit rating agencies are prone to be influenced by issuers to conduct illegal rating.There are also widespread problems in China,such as inflated rating and AAA credit default.However,self-discipline supervision and government supervision in China do not play a good role in supervision.Therefore,it is greatly significant that the legal supervision of credit rating agencies in China is studied and discussed.Besides,the self-governance of trade associations of credit rating agencies can be considered as one of the issues mentioned above,which is conducive to develop the relevant research in China,in content and form.In this paper,four parts are included except the introduction and conclusion.Part One: Overview of the supervision system of credit rating agencies.In this part,the concept and nature of credit rating agencies,their role,regulatory necessity and main regulatory methods are included.Based on the discussion of these two aspects,the basic content of the regulatory system of this type of institution has been shown,laying the foundation for this article.Part Two: Status analysis of China’s credit rating agency supervision and exploration of extraterritorial regulatory reforms.First of all,through the analysis of regulatory status of China’s current credit rating agencies on market access,information disclosure,conflicts of interest and other aspects,it is concluded that in China,the legal supervision of credit rating agencies has difficulties in terms of supervision model,market access system,information disclosure,self-regulation,etc.Then,extraterritorial implications such as strengthening selfregulation and unifying regulatory bodies have been summarized through the introduction of the regulatory reforms of credit rating agencies in the United States and the European Union.Part three: A new choice of credit rating agency regulation: self-governance of industry association.Under the current self-regulation and government supervision,credit rating agencies have not been effectively regulated.Therefore,industry associations can be selected as a new supervision method or idea.It can be seen from the discussion that the selfgovernance of industry associations is of great significance in the improvement of legal supervision,the development of self-regulation,and the advancement of the credit rating industry.Part Four: Proposals for the self-governance of the industry associations of credit rating agencies in China.In response to the above-mentioned problems,based on the self-governance of industry association of the credit rating agency,three proposals are put forward in this section.Firstly,it is necessary to establish a unified industry association to exercise the supervision in a unified manner.Second,in order to ensure effective competition in the credit rating market,an effective market access system should be established.The third point is that information disclosure should be further implemented,thereby enhancing the degree of selfregulation.