Dagong Analysts:On National Financial Work Conference

发布时间:2017-07-19 08:42:39    点击:

[Dagong’s View] 

Analysts of Dagong Global Credit Rating Co., Ltd said on July 17 they believe the just-closed National Financial Work Conference sent a clear political signal to the Chinese financial market.

It shows China’s top leaders will try all means to contain financial risks and prevent a system crisis in the advent of the 19th National Congress of Communist Party of China, scheduled later this year.

Dagong analysts said the National Financial Work Conference will benefit the Chinese capital market by strengthening regulation, and render better protection of interests of the investors and the general public.

Dagong analysts also noted that, once again, the top leaders called for the development of a society-wide credit system.

Under the circumstances of increasingly complex and ever-changing international market, heightening credit awareness in society, and improving credit management and credit rating are vital to China’s financial security, said the analysts.

Rating the credit standing of different market players is highly necessary for financial risk control and financial market regulation.

Meanwhile, Dagong analysts pointed out, because the National Financial Work Conference imposed life-long accountability on local officials for their debt financing decisions, governments on all levels and their affiliated enterprises can be expected to pay closer attention to credit management and to credit rating as an effective measure to avert regional debt risks and economic difficulties.

Dagong analysts forecast that, in the coming months, policies from the National Financial Work Conference can further lower the overall default rate among Chinese enterprises, by channeling more funds to the real economy and easing the debt burden of small and medium-sized enterprises. (END)

Yang Ying & Li Min, Analysts

Dagong Global Credit Rating Co., Ltd

Tel: 51087768-2017; 51087768-2056