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| China's Nine Dragons defends record in ratings row |
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http://m.sbdailynews.com
2011-07-12 |
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HONG KONG — Paperboard maker Nine Dragons Paper, a firm controlled by China's richest woman, defended its record on Wednesday after Standard & Poor's withdrew its credit rating on the company.
S&P said Tuesday it had withdrawn its "BB" long-term corporate credit rating, citing "insufficient access" to its management, sending Nine Dragons shares tumbling 17 percent in Hong Kong before trading was halted Tuesday.
The agency did not suggest any wrongdoing at Nine Dragons, but its decision comes as investors become increasingly worried about Chinese firms' corporate governance and the accuracy of their accounts.
"The company wishes to clarify that it has not received any written information request by S&P which it has not responded to," Nine Dragons said in a statement to the Hong Kong Stock Exchange.
Nine Dragons said it "categorically denies" the statement made by S&P, and noted that another ratings agency, Fitch, had not made any complaints about the Chinese firm during an ongoing rating assessment.
"The company is willing to cooperate with S&P and ready to respond to any information request from S&P for purposes of the rating at any time," it added.
Nine Dragons shares ended almost 14 percent higher at HK$6.43 (83 US cents) after trading resumed at on Wednesday afternoon.
The group, established in 1995, is the top packaging paperboard producer in Asia and is controlled by Zhang Yin, China's richest woman with an estimated fortune of $5.6 billion, according to China's Hurun Rich List.
Martin Wheatley, the outgoing head of Hong Kong's Securities and Futures Commission, has recently warned that investors could get burned if they rush into Chinese firms without putting their books under a microscope.
The US Securities and Exchange Commission is probing accounting issues at several Chinese firms that trade in the US, with some seeing their shares suspended over claims of various improprieties. |
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