Eversheds’ Hong Kong office has advised China Chengxin, a leading credit rating agency in the country, on securing a Type 10 licence to provide credit rating services in Hong Kong.
The licence – the first of its kind – was issued by the Hong Kong Securities and Futures Commission (SFC) in June this year. The SFC’s approval means that China Chengxin will be the country’s first credit rating company to operate in the international market.
A swelling number of Chinese companies have been issuing dim sum bonds – yuan-denominated debt instruments – in Hong Kong. In November 2011, Chinese state-owned steel manufacturer Baosteel Group issued 3.6 billion yuan in dim sum bonds, followed by a second issuance worth 2.9 billion yuan in February this year.
Hong Kong partner Kingsley Ong led the Eversheds team that guided China Chengxin through the application process, advising on corporate and regulatory legal issues.
Commenting on the credit rating agency’s expansion into Hong Kong, Ong said: “This confidence demonstrates its growing strength and influence beyond the local PRC market.”
Kanishk Verghese is North Asia journalist at ALB. Follow us on Twitter: @ALB_Magazine.
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