“This trend exists, but usually it’s invisible and more timid,” said Hui Man-cheong, a Hong Kong shareholder activist. A spate of attacks in 2010-2012 on Chinese companies listed overseas heightened sensitivity among companies and regulators to this type of public criticism. “In Hong Kong, there’s a culture of regulatory bias against critics,” said David Webb, a prominent Hong Kong corporate governance activist and investor. He said the Moody’s action in particular had a “chilling effect on negative research”. An individual familiar with the watchdog’s thinking said negative research served an important purpose – provided it was accurate and responsible.

Source: The Star August 14, 2016 23:15 UTC