Regulatory tightening in Hong Kong sees delistings outnumber resumptions: report
Grant Thornton says 35 companies were delisted from city’s stock exchange in 12 months to August this year
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 have comprehensively tightened resumption requirements,” said Barry Tong, national leader of forensic investigation services at Grant Thornton China, pointing to heightened scrutiny over asset overstatement and misappropriation, bank statement forgery and the illicit outflow of initial public offering proceeds.
