FINANCE

Exclusive: China Steps Up Oversight of Bond Rating Terminations

Published: May. 19, 2026 12:17 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Chinese regulators are increasing scrutiny of companies seeking to terminate bond credit ratings amid concerns some issuers may be using the practice to avoid downgrades, Caixin has learned.

Some rating agencies were recently instructed to report issuer-requested rating terminations to regulators within three working days, people familiar with the matter told Caixin. Agencies must explain the reasons for the termination and provide details on the issuer’s operations, financial condition and credit outlook.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Save an extra $50. Introductory offer for new readers. Subscribe now.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Regulators require agencies to report issuer-requested rating terminations within three days with reasons.
Some issuers terminate to avoid downgrades; Wuhan Hi-Tech terminated ratings with three agencies.
Critics say practice weakens transparency; over 90% of China’s domestic bond ratings are AA or above.

AI generated, for reference only

Who’s Who

Wuhan Hi-Tech Holding Group Co. Ltd.: Wuhan Hi-Tech Holding Group Co. Ltd. is a state-backed company that terminated its credit ratings with three agencies, citing business and development needs. This action drew market attention and contributed to Chinese regulators increasing scrutiny on bond rating terminations to prevent potential avoidance of downgrades.

AI generated, for reference only