HONG KONG (Reuters) -China’s securities regulator has issued a warning to S&P’s local subsidiary, telling it to “rectify” its operations and strengthen quality controls as authorities step up efforts to tighten oversight of the ratings industry.
The Beijing Bureau of the China Securities Regulatory Commission on Tuesday sent the letter to S&P Credit Ratings (China) Co Ltd in which it also said the company had failed to carry out proper disclosure procedures in its ratings business.
“Your company shall immediately carry out comprehensive rectification from the date of receipt of this decision, implement … other relevant regulations, strictly abide by the principles of prudence and consistency,” the commission said in a letter which was posted on its website.
It did not provide specific details about the matters it referred to.
S&P said it was committed to address the issues raised.
“S&P Global (China) Ratings has received a letter from the Beijing Bureau of the China Securities Regulatory Commission,” it said in an email response to Reuters.
“We are committed to taking the necessary steps to address the points raised and ensuring compliance with the regulatory requirements.”
(Reporting by Jessie Pang and Anne Marie Roantree; Editing by Susan Fenton)
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