Chinese Agency Opens in Europe
The Chinese rating agency, Dagong, is opening an office in Milan. It is a joint venture with a private equity group, Mandarin Capital Partners.
The Italian business daily, Il Sole 24 Ore, reports that Dagong has hired former Fitch executive Marco Cecchi di Rossi to launch the start-up, and the office intends to apply for authorization through the auspices of ESMA by summer.
Initially, the office will have 10 analysts. They will oversee securities issued in France, Germany, Italy, and Spain. Within five years, they intend to have 30 analysts, a 5-10% market share, and a turnover target of 9 million euros.
Dagong assessments are currently not considered outside of China; the agency has been sharply critical of western nations’ sovereign debt, particularly the United States’. I’m sure we will get transparency from a Chinese rating agency.