Former Prime Minister of Australia Kevin Rudd gives exclusive interview to Xinhuanet in Beijing, June 29, 2015. (Xinhuanet photo)

 There are potentials for the application of UCRG's dual credit rating system, Kevin Rudd, former Prime Minister of Australia, also member of International Advisory Council of Universal Credit Rating Group (UCRG), told Xinhuanet.

He made the remarks during an interview on the sidelines of the World Credit Rating Forum, sponsored by Universal Credit Rating Group and Xinhuanet and organized by Dagong Global Credit Rating Group.

Talking about the reforms of the international credit rating system currently under discussion, he expressed his confidence in UCRG's dual rating system.

“Whether the credit rating agency is full independent is one of the critical criteria,”he said, giving an example of American credit rating agencies which suffer from conflict of interest.

Rudd explained how the dual credit rating system being innovative. It is system of one global and one national criterion, and is utilized in slightly different ways in different places, but applied impartially, he said.

In addition, Rudd saw potentials of such proposals to be considered by the G20 in the financial stability board at the earliest opportunity. “I think it’s one of the unfinished eras of business for the G20. And China is holding G20 presidency next year, it provides a good opportunity,” he added.

Meanwhile, Australia officially became a founding member of the China-proposed AIIB with a contribution of 930 million AU dollars (718 million U.S. dollars) the same day.

In this regard, Rudd believed it is a good thing for Australia to finally come on board. “it’s a bit challenging, but we are looking forward to see the bank’s success,” he said.

Turning to the investment environment in China, he said, “Chinese consumers should make up their own mind about how they spend their hard-earned money,” referring the current shocking situation in the Chinese stock market.

On the general condition of the Chinese financial market, he added, the market is in a process of evolution, as all the stock markets in the world are capable of volatility, with ups and downs.

Rudd believed China’s featured economic development depends on a range of factors, one of which is how to fund the continued expansion of the booming private sector and the small and medium enterprises. “I think the use of China savings to fund the investment of small to medium enterprises is a good thing,” he said.

On the future of China-Australia relationship, he said he feels optimistic.

China and Australia have a strong relationship into the future, Rudd told Xinhuanet.

“Australia has been active in China one form or another for the last hundred years. I think the two countries have evolved a good diplomatic mechanism to resolve difficulties when they arise,” he added.