Hong Kong's sophisticated capital market attracts Mainland credit rating company (with photo)

     Dagong Global Credit Rating Co Ltd today (September 4) opened a Hong Kong subsidiary to cater to the increasing demand for Mainland China-specific credit ratings in the city's capital market.

     The company's Chief Executive Officer, Mr Brian McCullough, said that Hong Kong's robust Renminbi (RMB) market was a strong factor of consideration for Dagong when determining whether to have a foothold in the city.

     "With the development and rapid expansion of RMB-denominated issuances both by Chinese companies financing their growth and expansion and by multinational corporations financing trade and development in China and around the Asia Pacific region, we believe that it is the right time for our company to join this exciting market," Mr McCullough said.

     "Hong Kong is the centre for offshore RMB and as such will be increasingly important as a centre for issuance as intra-regional capital flows and trade continue to develop in Asia, and as Chinese capital increasingly moves overseas to Asia Pacific, Africa, Russia and the Middle East," he added.

     The Hong Kong subsidiary will be Dagong's regional headquarters, overseeing regional credit research and ratings, business development, client management and regional co-ordination.

     The Permanent Secretary for Financial Services and the Treasury (Financial Services), Miss Au King-chi, said that with its unique "One Country, Two Systems" advantage and international DNA, Hong Kong is the logical domicile for Dagong to grow its regional and global business.

     "The capital markets between the Mainland and Hong Kong have become increasingly connected. More and more Mainland enterprises would seek a credit rating as they make use of Hong Kong's financial platform to 'go global'. Mainland credit rating agencies in Hong Kong will be best positioned to facilitate the growth and expansion of these Mainland enterprises," she said.

     Associate Director-General of Investment Promotion Mr Charles Ng welcomed Dagong's entry to Hong Kong. He said, "As Mainland China's economy continues to open up, and given Hong Kong's unique edge in terms of its geographic proximity with the Mainland, the city's role as the major offshore RMB centre will continue to expand and evolve. This is creating business opportunities for financial institutions such as Dagong to come and expand in our city."

About Dagong Global Credit Rating Co Ltd

     Dagong Global Credit Rating Co Ltd was founded in 1994. Dagong has established a complete system of credit rating theories, standards development and innovation mechanisms, credit information production and service systems. Currently, it has 34 branches domestically and two overseas subsidiaries, with about 700 staff in total. For more information, please visit www.dagongcredit.com.

About Invest Hong Kong

     Invest Hong Kong (InvestHK) is the department of the Hong Kong Special Administrative Region Government established in July 2000 to attract foreign direct investment and support overseas and Mainland businesses to set up or expand in Hong Kong. It provides free advice and customised services to help businesses succeed in Hong Kong's vibrant economy. As at June 2014, InvestHK had completed over 3 300 investment projects creating more than 36 400 new jobs in the first year of operation or expansion and over HK$88 billion of investment. For more information, please visit www.investhk.gov.hk .

Ends/Thursday, September 4, 2014
Issued at HKT 22:01