Hong Kong exchange, accountants to hold urgent talks as half of listed firms may miss earnings deadline amid mainland travel curbs About half of Hong Kong-listed companies may miss the deadline in reporting their latest financial results as auditors face travel restrictions in mainland China following the outbreak of Wuhan coronavirus.
This has prompted the Hong Kong stock exchange operator and an industry representing the accounting profession to call for an urgent meeting on Thursday to tackle the looming problem, according to people familiar with the situation.
There were 1,241 mainland companies listed in Hong Kong at the end of 2019, making up half of the 2,449 members on the bourse, according to exchange data. They accounted for 73 per cent of the exchange’s market capitalisation and 83 per cent of the average daily turnover, reflecting their dominance and importance over the years in Asia’s third largest capital market.
“This is fast developing into a big issue for all stakeholders relating to financial reporting,” said Clement Chan Kam-wing, managing director of accounting firm BDO. “A large number of companies in China will be badly affected by the travelling restrictions and their ability to close their books in time.”
China has locked down at least 10 cities in the central province of Hubei including the capital Wuhan, the epicentre of viral outbreak that was first detected in December.
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