HKEX Warns of Possible Suspensions Over 'Going-Concern' Disclaimers

MT Newswires Live10-09 09:57

Hong Kong's securities regulator, accounting watchdog and stock exchange warned that listed companies with audit disclaimers solely related to going-concern issues could face trading suspensions if they do not significantly improve, according to a joint statement issued Thursday.

The Securities and Futures Commission, the Accounting and Financial Reporting Council and the Exchange called on company management, audit committees and auditors to strengthen going-concern assessments, oversight and disclosures.

The regulators said they would monitor the situation and take appropriate enforcement action where necessary.

The exchange may amend its listing rules to require suspensions for affected issuers if progress remains insufficient.

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