News Centre

The AFRC today has published a report titled Analysis of Listed Entities Suspended from Trading Due to Delay of Preliminary Annual Results Announcement. This report presents the AFRC’s analysis and observations of trading suspensions among listed entities in Hong Kong caused by delays in the publication of their preliminary annual results (Suspended Stocks). Additionally, the report provides clear recommendations for public interest entity (PIE) auditors, audit committees, and management of listed entities.

As of 2 April 2024, a total of 66 listed entities with December year-end were suspended from trading due to their failure to publish their preliminary 2023 annual results by 31 March 2024 (2023 Suspended Stocks). This represents a 12% increase from 59 listed entities (2022 Suspended Stocks) in the previous year.

Dr Kelvin Wong, Chairman of the AFRC, underscores the pivotal role of PIE auditors as flagbearers for auditing and financial reporting quality, “There is a strong public interest to understand the reasons for the suspension and resumption of trading in order to ensure sound investment decision.  Suspensions may indicate the existence of operational issues which necessitates additional time and effort to address. PIE auditors, management and audit committees of the listed entities must continue to effectively fulfil their responsibilities as gatekeepers in the trading resumption process and prioritise audit quality over other considerations.  In this way, PIE auditors, management and audit committees of the listed entities can uphold the integrity of the audit process, provide assurance on the reliability of financial statements, and ultimately maintain investor confidence in Hong Kong's capital markets.”

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