HKICPA: Some companies choose to postpone listings; accountants' workload not significantly affected

Recently, several companies have postponed or withdrawn their listings, or their listing applications have lapsed. HKICPA President Edward Chow believes that because market value, liquidity and other factors have fallen short of issuers' expectations, these companies have chosen to withdraw their listings. Unless an issuer completely shelves its listing plan, accountants are still needed to continue updating data, so accountants' workload has not changed much. He added that although staffing remains tight, the industry has substantially increased hiring, and the Institute trains a considerable number of professionals every year and also uses AI tools as support, emphasizing that the profession will act in accordance with auditing standards. The Securities and Futures Commission and others published a joint statement last month, expressing concern that the number of cases in which auditors issue "disclaimers of opinion" in listed companies' financial statements due to going concern issues continues to rise. Chow said this is a good-faith guidance for auditors, not a condemnation that auditors have problems. The relevant audit guidance has not changed; it is more a matter of the companies' own operating problems, possibly involving market changes and unsatisfactory business, all of which will trigger different levels of qualified opinions and require trading suspensions. Chow pointed out that the Institute has made good progress in communication with the Accounting and Financial Reporting Council on ESG assurance and expects a relevant consultation conclusion before the end of the year. The Institute supports this.