The lobby of Dagong Global Credit Rating in Beijing on November 29, 2013. Photo: Reuters
The lobby of Dagong Global Credit Rating in Beijing on November 29, 2013. Photo: Reuters
Bonds

China makes debt rating agency pay for default, in a precedent for legal and financial service firms to be responsible for their work

  • Dagong Global Credit Rating must repay up to 10 per cent of at least 494 million yuan of combined debt claims to more than 400 individual bondholders of Wuyang Construction Group, which defaulted on 1.4 billion yuan of bonds three years ago
  • Wuyang Construction’s legal representative and actual controller Chen Zhizhang, underwriter Tebon Securities, as well as an accounting company and a legal firm are also collectively responsible, the court said

Topic |   Bonds
The lobby of Dagong Global Credit Rating in Beijing on November 29, 2013. Photo: Reuters
The lobby of Dagong Global Credit Rating in Beijing on November 29, 2013. Photo: Reuters
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