China Fishery/ Pacific Andes

China Fishery/ Pacific Andes: Moody's says that the regulator's investigation on China Fishery (B2 stable) and its parents is credit negative.

Recall on 20 Aug, China Fishery and its parents Pacific Andes and HK-listed Pacific Andes International Holdings disclosed that they are under investigation by the Monetary Authority of Singapore and Commercial Affairs Department for an offence under the Securities and Futures Act.

China Fishery had then stated that the business and operations of the group were unaffected by the probe and will continue as usual.

However, the rating agency argued that a negative rating action is still possible if the nature or consequence of the investigation has a material impact on China Fishery's operations.

Following a sharp selldown in the past three days, both counters are priced at liquidation valuations, with Pacific Andes trading at 0.08x P/B, while China Fishery is valued at 0.09x P/B based on their respective NAVs/share of HK$1.45 ($0.26) and US$0.39 ($0.55).