CHINA'S central bank is working on a rating system for the foreign exchange market, a senior official with the bank said today in Shanghai.

Participants in the market will be rated by independent rating institutions, according to Zheng Yang, a department director with the bank's Shanghai headquarters.

The results will be used to judge whether a trader will be permitted into the market and how big its business scale will be allowed to be.

A database will also be established to improve the supervision of the market, Zheng added.