International ratings firm Fitch has pulled out of the mainland's only Sino-foreign joint venture agency licensed to rate yuan bond issues.
The company said yesterday it needed total control of the ratings process. It had won regulatory approval to divest its 30 per cent stake in Beijing-based China Chengxin International Credit Rating.
'The divestment is made in line with Fitch's global strategy of securing majority control over its overseas subsidiaries,' Fitch said in a statement.
The company says it remains committed to China and will beef up operations at its Beijing representative office.
While foreign agencies have been restricted to rating international offerings by Chinese companies, Fitch's investment in Chengxin gave it access to the small but expanding market of mainland domestic bond issues.
The World Bank's private sector investment arm, International Finance Corp (IFC), also has a stake in the venture, having paid US$360,000 for 15 per cent of Chengxin. Fitch paid about 3.6 million yuan for its stake, which it will sell to remaining shareholders, according to Fitch Asian Group managing director Bernard de Lattre.
