CSRC Advisor: Politcal System «Irrelevant» to Credit Ratings
Chinese authorities strike back against recent comments from the Fitch downgrade of Hong Kong issuers, calling factors such as the political system as an «irrelevant thing» to consider in its analysis of the city's creditworthiness.
According to an expert advisor from the China Securities and Regulatory Commission (CSRC), Dong Shaopeng, Hong Kong's recent credit rating downgrade was a politically motivated matter, highlighting other factors it should focus on instead.
«If you want to rate Hong Kong, then please include relevant indicators such as financial market openness, financial risk management ability and business convenience,» Dong said in a report from state media «Global Times».
«Why did Fitch cite such an irrelevant thing as the political system to support its analysis?»
«Cold War»
According to the report, the CSRC advisor described the downgrade «over the SAR's rule of law as a move full of political bias that exposed US firms' long-arm jurisdiction and political interference into a country's internal affairs», adding that the move was part of a «cold war» to pressure emerging and developing economies like China.
«We need an overhaul in the global rating system,» Dong added. «Otherwise the developing world should form their own rating firms that respect every country's political system and that know emerging economies well.»
