How Moody’s SFC penalty could hurt China’s capital markets

The rating agency appeals against sanctions imposed by Hong Kong regulator for a negative report on Chinese companies. If the decision is upheld, price discovery will suffer.

How Moody’s SFC penalty could hurt China’s capital markets

Financial watchdogs are supposed to protect investors, but Hong Kong’s securities regulator is pushing for sanctions that would likely hinder price discovery and hurt the reputation of Chinese equity markets when they are fast opening up to foreign capital.

Moody's was this month given leave to go to Hong Kong's Court of Final Appeal against being penalised for a 2011 report in which it raised concerns about Chinese...

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