Stricter regulations on rating..........>

CHINA PRESS: Stricter regulations on rating agencies released by the PBOC and

the securities watchdog this week will promote help healthier development of the

bond market and the rating industry, Financial News, a PBOC newspaper, said in a

commentary. The new rules should bridge regulatory differences between interbank

bond markets and bond exchanges, the newspaper said. It will also encourage

mergers between rating organizations under same ownership, increase scrutiny of

the rating agencies, and bring their professional levels up to par with

international bond rating firms, Financial News said.

***Comment: Regulators have increased pressure on bond agencies to improve their

level of professionalism after several cases of bond defaults exposed many bond

raters' subpar standard.