PBoC proposes new rules for credit rating agencies as part of sector shakeup

These regulations are part of a long march to clean up problems in the bond market, implement the government’s commitment to ending the implicit guarantee that defaulting corporates will get a bailout, and develop markets where risks are correctly priced and investors bear the cost of defaults. China needs to develop a deep and liquid bond market to provide financing for its corporate sector and decrease dependence on the banking system for credit …