China should reduce its reliance on overseas rating companies by encouraging large financial institutions to strengthen their research and make their own judgments, central bank Governor Zhou Xiaochuan said.   China is also considering establishing credit-rating companies backed by the government.  Zhou’s remarks reflect China’s desire to seek alternatives to the top-three global rating companies amid skepticism among officials about their independence.

Last year China set up its first rating company (China Credit Rating Co.) that makes investors pay rather than borrowers.

Source:  Bloomberg