Chinese rating agency Dagong resumes operations after suspension

BEIJING, Nov 4 (Reuters) - Dagong, one of China’s biggest debt-rating agencies, said on Monday that it resumed its ratings business this month, after the operation was frozen for a year and after a shareholding restructuring that brought the company under state control.

“The company has fully restored credit rating business for non-financial corporate debt financing instruments in the interbank market, and securities credit rating business, since November,” Dagong said in a statement on its website

Dagong was one of the country’s four big bond rating companies and has achieved some recognition outside China for its sovereign issuer ratings.

It was banned from continuing its business in August last year after authorities rebuked it for misconduct, including providing consultation service to its rating clients, and poor internal management and modelling practices.

Dagong responded by apologising for its risk management problems and said it would rectify its operations.

As part of the “rectification”, China Reform Holdings Corp Ltd, a centrally administered, state-owned investment firm, acquired a 58% stake in Dagong Global Credit Rating Co Ltd in April, according to the statement.

“We will strive to create a first-class rating agency with regulatory approval, investor support, and shareholder reassurance,” Dagong said.

It added that it would serve to help centrally owned Chinese companies enhance their financing ability and contribute to maintaining financial market stability. (Reporting by Yawen Chen and Andrew Galbraith; Additional Reporting by Cheng Leng Editing by Robert Birsel)