News & Events

China Chengxin (Asia Pacific) Credit Rating Co., Ltd. ("CCXAP") is pleased to announce today (31 March 2023) that it has become the first Chinese credit rating agency approved by Hong Kong's Mandatory Provident Fund Schemes Authority ("MPFA"). Prior to this, the MPFA had approved five foreign credit rating agencies.

The MPFA is Hong Kong's regulatory body responsible for regulating and supervising the operation of the Mandatory Provident Fund ("MPF") and Occupational Retirement Schemes in Hong Kong. The MPF has been implemented since 2000 and requires employees and self-employed individuals aged 18 to 64 to participate. Employers and employees contribute to specific fund portfolios that are managed by MPF intermediaries. The MPF covers over 85% of Hong Kong's workforce, with total assets under management exceeding a trillion Hong Kong dollars at the end of 2022, of which debt investments accounted for about 20%.

With the approval from MPFA, CCXAP’s international debt rating activities will be expanded to include the MPF. This approval has significant implications for China credit rating agencies "going global" and is an important milestone to help enhance the international debt market development. On the one hand, the inclusion of China Chengxin Asia Pacific in MPFA’s approved list is conducive to the long-term development and benign competition in the international credit rating market, and will ultimately help enrich the scope and quality of rating services. On the other hand, international investors will have additional accesses to receive more diverse risk information, which will allow for more choices in formulating investment targets and meeting different asset allocation needs. Furthermore, with the internationalization of the Renminbi, international investors' demand for Chinese investment assets is increasing day by day, and with more and more Chinese issuers engaging in overseas financing activities, China's capital market internationalization level is continuously uplifting, therefore it requires professional rating agencies to convey more comprehensive and accurate viewpoints to help global investors better understand the rating logic and credit risk of Chinese issuers.

Since receiving the Type 10 license from the Securities and Futures Commission of Hong Kong in 2012, CCXAP has been adhering to the principle of "based in Hong Kong, facing the world" and has been committed to providing professional rating, research and credit analysis services to international investors. China Chengxin Group has been tracking Chinese issuers for a long time, while also having multiple domestic risk information channels, a large professional analysis team, extensive data accumulation, and credit concepts. After receiving the approval from MPFA, CCXAP will continue deepening its development and providing high-quality services to investors.