Study On Conflicts Of Interest Relating To Credit Ratings Of China

The main function of credit ratings is simplifying complex credit information into a ratingsymbols and delivering it to the market participants, thereby to reduce informationasymmetry. In addition, it has been widely used in the law and regulations, so that it hasfinancial regulatory function. However, conflicts of interest cover the objectivity and fairnessof credit rating, and make it difficult to function properly. At present, regulation principle,regulation system and content of China’s current legal system are flawed. To exploresolutions to these problems and build a complete system of regulations has undoubtedlypractical significance.The paper is composed of four chapters.The first chapter is “generalization of conflicts of interest in credit rating”. Based ondefinition of credit rating and clarification of credit rating function, the author research theessence of credit rating,disclose the source of conflicts of interest, and further analyze thecurrent conflicts of interest in credit rating in China.The second chapter is “reality and Legal theory of regulating conflicts of interest”. Theauthor argued the necessity and feasibility from theory and real example.And clarified theconnotation, system and principle about regulating the conflicts of interest.The third chapter is “Study on Chinese and foreign legal regulation on credit ratingconflicts”. Focusing on the Chinese and foreign legal regulation, the author tried to identifycommonalities and differences between them, and to sum up experience of lawmaking.Meanwhile found out the deficiency of chines law and regulations.The fourth chapter is “The idea of legal regulating on credit ratings”. On the one hand, theauthor discussed the basic principles and system of legal regulation from the macroscopicperspective. On the other hand, the author put forward some related legislative proposals.