Beijing Warns S&P Global’s China Unit Amid Push to Curb Inflated Credit Ratings
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China’s securities regulator has issued a warning to the local subsidiary of S&P Global Inc. for failing to comply with rules on consistency and information disclosure, as authorities step up efforts to curb inflated credit ratings.
The Beijing bureau of the China Securities Regulatory Commission released the warning letter on Tuesday, ordering S&P Ratings China Co. Ltd. to immediately carry out a comprehensive rectification. The regulator instructed the firm to strengthen quality control in its rating operations and improve the standardization of information disclosure.

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- China’s securities regulator warned S&P Ratings China for inconsistent practices and information disclosure, ordering immediate rectification.
- S&P China was previously fined 2 million yuan ($281,000) in 2023 for similar violations and has raised ratings of some LGFVs to AAA, higher than other agencies.
- The industry is considering shifting from an issuer-pays to a buyer-funded model to address inflated ratings and improve credibility.
- S&P Global Inc.
- S&P Global Inc.'s Chinese subsidiary, S&P Ratings China Co. Ltd., has faced regulatory warnings and fines from China's securities regulator. The firm was cited for failing to comply with rules on consistency and information disclosure, particularly in its rating operations and standardization of disclosure. This is the second such penalty the U.S. ratings agency has received in China since 2019. Some industry insiders suggest S&P China has been "loosening standards" to attract clients amidst fierce competition.
- S&P Ratings China Co. Ltd.
- S&P Ratings China Co. Ltd. (标普信用评级(中国)有限公司) received a warning from China's securities regulator for failing to maintain consistency and properly disclose information, particularly regarding its credit rating methodologies. This is the second such penalty since 2019, with a previous fine incurred for similar violations.
- 2019:
- S&P China was officially approved to conduct rating business in China.
- End of 2023:
- S&P China introduced an updated rating methodology.
- 2024:
- S&P China was fined about 2 million yuan for violations related to consistency and information disclosure.
- 2024:
- S&P China assigned a AAA issuer rating to four municipal-level LGFVs, its first ratings for these companies.
- October 1, 2025:
- China's securities regulator issued a warning letter to S&P Ratings China Co. Ltd., ordering comprehensive rectification.
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