Research On The Regulation Of Chinese Credit Rating Agencies Under The Perspective Of Sub-Prime

In recent years, with the development of credit market and capital markets, especially the continuous expansion of the corporate bond market, credit rating industry grows and develops continuously. However, due to the lack of effective industry self-regulation and government regulation, it leads to confusion in the credit rating market, which shows disorderly competition in the credit rating agencies and the lack of credibility of the ratings and so on. For our country's credit rating industry problems, financial regulators have also taken some measures. However, the credit rating industry in China starts late and legislation lags behind. Meanwhile, neither the establishment of credit rating industry associations to regulate, nor is there corresponding laws and regulations to standard the operation. The supervision problems of credit rating agencies are exposed in the sub-prime crisis, which also alarm our country. Therefore, it is important to strengthen the supervision of credit rating industry.This article begins with introduction of the theories of rating agencies regulation. Credit rating agencies as part of the financial market infrastructure, there are also some market failure problem. Therefore, credit rating market also needs government regulation. The reputation mechanism will encourage the credit rating agencies to seek high-quality credit rating, so the reputation mechanism forms the market regulation of credit rating agencies. This paper reviews the institution change of credit rating agencies of the United States and analyses the causes and problems of inadequate supervision on the rating agencies in the sub-prime crisis. This paper reviews the history and the status of the regulation on the credit rating agencies and points out the problems. Then, the paper uses game theory to build a four-game, it shows that credit rating agencies need the government regulation which will provide an optimal regulatory strategy for reference. Finally, this paper puts forward four proposals from the perfection of government regulation and industry self-regulation...