Tuesday, July 12, 2011

Companies Making Money




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align="justify">Earlier I mentioned that Dagong has picked a fight with Moody’s, saying that Moody’s allegation of the underestimation of China’s local government debts is “unfounded with vicious intent”, the usual Chinese foreign policy speak.

align="justify">Now, Moody’s steps up its effort in making further scrutiny on China after alleging the Chinese authority of understating Chinese local government debts.

align="justify">In a new report from Moody’s, it looks for 20 red flags in 61 non-financial companies, grouped into five categories:

  • Weaknesses in corporate governance
  • Riskier or more opaque business models
  • Fast-growing-business strategies
  • Poorer quality of earnings or cash flow
  • Concerns over auditors and quality of financial statements
align="justify">Of 61 companies they looked at, 49 were high-yield, and 29 of which are property developers.  Below are the companies they highlighted as having many red flags:

  • West China Cement (Ba stable) – 12 red flags
  • Winsway Coking Coal (Ba3 stable) – 11 red flags
  • China Lumena New Materials (B2 negative) – 10 red flags
  • Hidili Industry International (B1 stable) – 9 red flags
  • LDK Solar (B1 stable) – 9 red flags
  • Longfor (Ba2 stable) – 7 red flags
align="justify">Naturally, stocks are lower for the mixed of reasons, including Moody’s curse and La forza del destino, i.e. Italian crisis.

This article originally appeared here: Rating Agencies Fight: Moody’s Versus Dagong/> Also sprach Analyst - World & China Economy, Global Finance, Real Estate

Related Posts
  • More On Debts In China, And Why You Should Ignore Dagong Rating Agency
  • Richard Koo: Rating Agencies Could Destroy Global Economy Again
  • China Economy: Clean-up Of Local Government’s Debts
  • La forza del destino: Chinese Rating Agency Puts Italy On Watch
  • The Trillion Dollar Question: China’s Local Government Debts Mystery Revealed


Read more posts on Also Sprach Analyst »



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* Copyright © 2011 Business Insider, Inc. All rights reserved.
Registration on or use of this site constitutes acceptance of our Terms of Service
and Privacy Policy.
| Disclaimer




Powered by MongoDB
|
Hosted by Datapipe
|
Web analytics by Empirical Path


align="justify">Earlier I mentioned that Dagong has picked a fight with Moody’s, saying that Moody’s allegation of the underestimation of China’s local government debts is “unfounded with vicious intent”, the usual Chinese foreign policy speak.

align="justify">Now, Moody’s steps up its effort in making further scrutiny on China after alleging the Chinese authority of understating Chinese local government debts.

align="justify">In a new report from Moody’s, it looks for 20 red flags in 61 non-financial companies, grouped into five categories:

  • Weaknesses in corporate governance
  • Riskier or more opaque business models
  • Fast-growing-business strategies
  • Poorer quality of earnings or cash flow
  • Concerns over auditors and quality of financial statements
align="justify">Of 61 companies they looked at, 49 were high-yield, and 29 of which are property developers.  Below are the companies they highlighted as having many red flags:

  • West China Cement (Ba stable) – 12 red flags
  • Winsway Coking Coal (Ba3 stable) – 11 red flags
  • China Lumena New Materials (B2 negative) – 10 red flags
  • Hidili Industry International (B1 stable) – 9 red flags
  • LDK Solar (B1 stable) – 9 red flags
  • Longfor (Ba2 stable) – 7 red flags
align="justify">Naturally, stocks are lower for the mixed of reasons, including Moody’s curse and La forza del destino, i.e. Italian crisis.

This article originally appeared here: Rating Agencies Fight: Moody’s Versus Dagong/> Also sprach Analyst - World & China Economy, Global Finance, Real Estate

Related Posts
  • More On Debts In China, And Why You Should Ignore Dagong Rating Agency
  • Richard Koo: Rating Agencies Could Destroy Global Economy Again
  • China Economy: Clean-up Of Local Government’s Debts
  • La forza del destino: Chinese Rating Agency Puts Italy On Watch
  • The Trillion Dollar Question: China’s Local Government Debts Mystery Revealed


Read more posts on Also Sprach Analyst »




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