Hong Kong court rejects Moody's appeal over 'red flags' report

Hong Kong

HONG Kong's Court of Appeal found credit rating agency Moody's broke the rules when it published a report on Chinese companies in 2011, rejecting the company's attempt to appeal a tribunal ruling on the matter, Moody's said on Thursday.

The case has been closely watched by the financial industry and corporate governance activists as it is likely to redefine the limits on what can be written in research reports on public companies, potentially curtailing the activities of research firms in the financial centre.