Reporting season in Hong Kong is exposing a number of problematic Chinese companies with audit issues.
Hong Kong-listed Ports Design Ltd. said KPMG needed more time to audit its accounts.Three companies halted trading in Hong Kong on Thursday, including Shirble Department Store, which didn’t provide a reason for its suspension. However, the stock has dropped 26.5% since Mar. 21’s close, when the company said it would postpone its full-year results to Mar. 30 from Mar. 22, as its auditor needs more time to finalize its accounts.
Another company, Ausnutria Dairy Corp. Ltd., said in a statement to the stock exchange on Thursday morning it would also delay the publication of its results.
High-end fashion retailer Ports Design Ltd. also said on Thursday it would postpone its annual results report as auditor KPMG needed more time to audit its accounts.
The suspensions come after Daqing Dairy Holdings Ltd. and Boshiwa International Holdings Ltd., a children’s apparel maker, both said earlier this month that Deloitte had resigned as their auditor. Boshiwa shares had fallen 35% before being halted from trading on Mar. 22.
Thursday, March 29, 2012
Accounting Problems in China Make a Comeback
Chinese companies accounting scandal is back! Big companies are getting hit this time.