THE European branch of Dagong Global Credit Rating Co, China's domestic rating agency, officially started conducting business in Europe yesterday after gaining authorization from the European Securities and Markets Authority.

Established in April 2012 in Italy's business capital Milan, Dagong Europe Credit Rating is the first Asian rating company operating in the European Union.

The European branch was the result of a joint venture between Beijing-based Dagong, one of the few notable non-US-based credit rating agencies, and Milan-based Mandarin Capital Partners, a private equity fund formed by institutional investors from Europe and China and focused on bilateral cross-border transactions.

"Our aim was to bring a new competitor on the European rating market," Mauro Alfonso, general manager of Dagong Europe, said.