CSRC Unveils Classification of Securities Firms
The China Securities Regulatory Commission (CSRC) recently unveiled for the first time classification and evaluation results of securities firms to promote transparency in supervising the sector, the China Securities Journal reported Wednesday.
According to regulations, the CSRC classified securities firms into five categories including 11 levels (AAA, AA, A, BBB, BB, B, CCC, CC, C, D and E). Securities firms put into categories A to C are normally operating companies that can manage their risks, while those categorized into D and E might not be able to handle potential risks independently, the report said.
Of all the securities firms that participated in the classification this year, 35 were labeled A, accounting for 35.7 percent of the total, 49 were put into category B, accounting for 50 percent of the total and 14 fell into category C. No companies were evaluated as D or E.
The classification work has been underway for four years and has become more accepted by the industry, according to the report.
Source: China Daily