Hong Kong accountants see limited impact from IPO delays, says institute
Hong Kong Institute of CPAs president says firms delaying listings have not significantly changed accountants' workload, as staff numbers and AI tools help. Regulators' concerns over rising 'disclaimer of opinion' cases are a guidance, not a rebuke, he adds.
The president of the Hong Kong Institute of Certified Public Accountants has said that the recent wave of companies postponing, withdrawing or letting listing applications lapse has not significantly affected accountants' workloads.
Law Chuck-kin, president of the institute, said on 5 November that many issuers withdraw because market valuations or liquidity have fallen short of expectations. Unless an issuer abandons its listing plan entirely, accountants must continue updating financial data, so the volume of work has not changed much, he explained.
While staffing remains tight, the industry has hired many new workers, the institute trains a large number of professionals each year, and artificial-intelligence tools are providing support, Mr Law said. He stressed that the profession follows auditing standards.
Last month, the Securities and Futures Commission and other regulators issued a joint statement expressing concern about a rising number of cases in which auditors issue a 'disclaimer of opinion' on listed companies' financial statements because of going-concern issues. Mr Law described the statement as a well-intentioned guide, not a rebuke of auditors, and noted that auditing guidance has not changed. He said the problem lies more with the companies themselves, which may face market changes or poor business conditions that trigger varying levels of qualified opinions and lead to trading suspensions.
Mr Law also said communication between the institute and the Accounting and Financial Reporting Council on environmental, social and governance assurance has progressed well. He expressed hope that a consultation summary would be issued before the end of the year and said the institute supports it.
