Domestic ratings firms need to get their house in order, say analysts

As leading global ratings agencies enter the Chinese financial sector with vigorous strides, local peers may feel pressure to maintain market shares. But the catchup strategy needs to begin with them getting their own house in order, according to analysts.

China's immature credit ratings industry will face fierce competition against the international giants, requiring a much stronger regulatory system to foster domestic high-quality services, they said.

Criticism clouded the industry last year, when the country's biggest four ratings companies - China Chengxin International Credit Rating, China Lianhe Credit Rating, Shanghai Brilliance Rating and Dagong Global Credit Rating, all received warnings from the regulators.