To The Moon

The National Association of Financial Market Institutional Investors has issued a notice on further standardizing credit rating matters for Panda bonds. The notice outlines several key requirements for credit rating agencies involved in Panda bond business.

Firstly, credit rating agencies conducting Panda bond business must strictly adhere to regulatory stipulations and self-disciplinary rules when performing their ratings. They are required to determine rating outcomes based on principles of independence, objectivity, and prudence.

Secondly, these agencies are mandated to publicly disclose their credit rating definitions and the mapping relationships between their domestic ratings and internationally recognized mainstream credit grades. This information must also be submitted to the Association.

Thirdly, the Association will intensify its self-regulatory oversight of the quality of Panda bond credit ratings. For agencies found in violation of self-disciplinary rules, the Association will impose appropriate self-regulatory measures or disciplinary actions, depending on the severity of the infraction.

Fourthly, the notice is scheduled to take effect from August 1, 2026. Importantly, for any credit rating agency that fails to publicly disclose the required mapping relationships as stipulated by this notice, the Association will no longer accept its credit rating reports as part of the registration materials for Panda bonds.