Moody's challenges Hong Kong regulator over China report
HONG KONG -- Moody's Investors Service is challenging a $3 million fine by Hong Kong's securities regulator, which accuses the credit rating agency of misconduct over a 2011 report that flagged potential problems at Chinese companies.
Lawyers for Moody's Hong Kong unit and the Securities and Futures Commission outlined their arguments at a two-day appeals tribunal hearing that began Thursday.
The case is the first of its kind and, together with a separate case against Citron Research, has raised fears about a chilling effect on critical financial research in the semiautonomous Chinese city.
A former British colony, Hong Kong is an Asian financial center that retains civil liberties such as free speech not seen on the mainland as well as a separate legal and financial system.
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