Fitch warns of ratings cut for China if data revisions prove major

Recent falsification by provincial governments may highlight shortcomings in the auditing process

Fitch Ratings on Tuesday warned that it would take ratings action against Chinese local governments if revisions to their fiscal data were significant after recent reports on fake economic data deepened concerns about governance and oversight.
 

Local and regional governments in China have long been suspected of cooking up numbers. Blame is often put on ambitious local officials trying to brighten their career prospects by delivering stellar work reports.
 

The agency’s comments come after the autonomous region of Inner Mongolia earlier this month said its fiscal revenue for 2016 ought to be 26 per cent less than initially stated.
 

Fitch