China Approves US Credit Rating Agency 'Fitch' to Enter Domestic Market

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] China has approved the entry of the U.S.-based credit rating agency Fitch into its domestic credit rating market.

The People's Bank of China, the country's central bank, announced on its website on the 14th that "Fitch's independently established Chinese subsidiary has been granted permission to operate." Last January, during the ongoing U.S.-China trade negotiations, China had allowed the U.S. rating agency Standard & Poor's (S&P) to enter its market.

As a result, two of the world's three major credit rating agencies, excluding Moody's, have simultaneously entered the Chinese market.

The People's Bank of China explained, "Opening the credit rating industry to foreign participation is an important part of our country's financial sector opening," adding, "Fitch's entry into the Chinese credit rating market is also a concrete implementation of the Phase One U.S.-China trade agreement."

This move came amid growing concerns that the U.S.-China trade agreement might collapse due to the novel coronavirus disease (COVID-19).

This content was produced with the assistance of AI translation services.