China "red flags" report had errors, but nothing major, Moody's tells HK tribunal
HONG KONG, Sept 11 (Reuters) - Ratings agency Moody's Corp told a Hong Kong tribunal on Friday a report on Chinese companies had some errors, but it stood by the material outcome of the study, which raised concerns about corporate governance at 49 Chinese companies.
Moody's said the errors, however, were not serious enough to warrant a HK$6 million ($774,213) fine by Hong Kong's Securities and Futures Commission (SFC), which said the mistakes were a due serious breach of the due diligence standards.
That fine was part of a larger $3 million penalty the regulator imposed on Moody's. The ratings agency is appealing the ruling.
($1 = 7.7498 Hong Kong dollars) (Reporting by Michelle Price; Writing by Elzio Barreto; Editing by Miral Fahmy)
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