Regulatory tightening in Hong Kong sees delistings outnumber resumptions: report
The tightening of Hong Kong’s securities regulations – in the wake of property developer Evergrande’s liquidation and unrelated IPO frauds – has resulted in more delistings than resumptions for the first time in three years, according to a report by accountants Grant Thornton. Hong Kong saw 35 delistings in the 12 months to August this year but only 21 resumptions, the report said. “Regulators…
The regulatory tightening in Hong Kong has led to more delistings than resumptions for the first time in three years, according to a report by Grant Thornton. There were 35 delistings and only 21 resumptions in the 12 months to August, with 102 companies in prolonged suspension, up 19% from the same period last year. The report attributes this trend to heightened scrutiny over asset overstatement, misappropriation, bank statement forgery, and illicit outflows of IPO proceeds.
The increase may also be linked to macroeconomic pressures in mainland China, potentially leading some Hong Kong-listed companies operating on the mainland to engage in fraudulent behavior. The Evergrande scandal, which resulted in financial fraud, has heightened regulatory scrutiny in the region.
Brief written by urgent.news from SCMP Business's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
