Key facts
- More companies were delisted than resumed trading in Hong Kong for the first time in three years.
- Regulators have tightened resumption requirements.
- The trend follows Evergrande's liquidation and IPO fraud cases.
Hong Kong's securities regulations have been tightened, leading to more company delistings than resumptions for the first time in three years, according to a report by accountants Grant Thornton. In the 12 months leading up to August, the city saw 35 delistings compared to 21 resumptions. Barry Tong, national leader of forensic services at Grant Thornton, stated that regulators have comprehensively tightened resumption requirements. The regulatory shift follows the liquidation of property developer Evergrande and unrelated IPO fraud cases.