China's central bank Tuesday said that its measure to specify requirements in regulating the credit rating of bond issuers in the country's interbank borrowing market will protect investors and safeguard market stability.

The People's Bank of China issued rules at the end of last year on the administration of the credit rating of bond sellers on the interbank market.

The central bank now requires all bond issuers to be rated by a domestic credit rating agency, with the bank overseeing the entire process.

It will pay special attention to the quality of the rating agencies to ensure that only qualified ones can operate, said a central bank spokesman.

He added that enhanced supervision of the credit management business would prevent vicious competition in the sector.

The sector is also important as it is closely related to the protection of companies' commercial secrets, and even the country's information security and economic interests.

(China Daily January 26, 2005)