China fact of the day

Around 97% of existing yuan-denominated bonds hold ratings of double-A to triple-A—the best a company can get.

That is from Fiona Law, cited by Christopher Balding, and ultimately Alex Frangos, those are ratings from Chinese sources.  Law reports:

With nine Chinese ratings firms to choose among, “bond issuers are encouraged to pick the highest ratings among agencies,” said Guan Jianzhong, chairman of Dagong Global, the country’s third-biggest ratings company in terms of market share. The fact that the bonds are rated double-A-minus or above, they “are not without risks,” he said.

By the way, the Shanghai Composite Index closes down 8.5%.

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