26.01.2015 04:09:00

Moody's: China's crackdown on margin trading exposes weaknesses in securities industry

Hong Kong, January 26, 2015 -- Moody's Investors Service says that the China Securities Regulatory Commission's (CSRC) announcement of penalties against 12 Chinese securities companies is credit negative for these firms because it illustrates widespread weaknesses in the companies' operational risk management processes, internal controls, and compliance procedures, as the sector experiences rapid growth and product diversification.

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