HKEX’s final consultation regarding a proposal for listed issuers with a disclaimer or adverse audit opinion on financial statements
On 24 May 2019, the Stock Exchange of Hong Kong Limited (the Exchange) published the conclusions of its consultation on a proposal relating to listed issuers with a disclaimer or adverse audit opinion on their financial statements.
The Exchange will adopt the proposal to require trading suspension for a listed issuer which publishes financial statements with a disclaimer of opinion by the auditor or an adverse opinion, with modifications to exclude going concern issuers from trading suspension.
Trading suspension is not required for issuers with a disclaimer or adverse opinion if the underlying issue has been resolved before the publication of the preliminary results announcement.
The new Listing Rule will apply to issuers’ preliminary annual results announcements for financial years commencing on or after 1 September 2019.
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