Research Publication: Measuring the Creditworthiness of China’s Corporates Using a Global Rating Scale


24 Jun 2021

    HONG KONG, 24 June 2021. Pengyuan International has today published a research report “Measuring the Creditworthiness of China’s Corporates Using a Global Rating Scale”.
    China has overtaken Japan as the world's second largest bond market, with a market capitalisation of o
    ver USD17.70 trillion. The offshore Chinese bond market has also grown to become the largest in the international bond market across the Asia-Pacific region, with USD961 billion in outstanding bonds (excluding sovereign bonds). Foreign participation in China's bond market, on the other hand, remains extremely limited. While foreign investors' access to China's onshore bond market has significantly improved, foreign investors continue to primarily hold sovereign and quasi-sovereign bonds. Among other things, the absence of globally comparable credit ratings creates a barrier for many international investors who rely on global scale ratings to guide their investment and risk management decisions

    This report aims to shed light on the characteristics and credit profile of Chinese corporate issuers under a globally comparable framework by adopting Pengyuan International's analytical approaches. In particular, we apply our credit analysis framework to 534 Chinese corporate bond issuers that have issued bonds in the offshore market. Utilizing a globally comparable rating system allows for greater credit differentiation and makes it easier for international investors to understand Chinese bond markets and compare debt securities from various countries.

    ANALYST CONTACTS

    Primary Analyst
    Ke Chen, PhD
    +852 3615 8316
    ke.chen@pyrating.com
    Secondary Analyst
    Jonathan Joseph Tai
    +852 3615 8276
    jonathan.tai@pyrating.com
    Leon Li
    +86 755 2348 3867
    leon.li@pyrating.com
    Jameson Zuo
    +852 3615 8341
    jameson.zuo@pyrating.com
    MEDIA ENQUIRIES
    Charley Lui
    +852 3615 8296
    charley.lui@pyrating.com
    RATING SERVICES ENQUIRIES
    Allen Wei
    +852 3615 8324
    allen.wei@pyrating.com
    Date of Relevant Rating Committee: 24 June 2021
    Additional information is available on www.pyrating.com

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