Long-suspended Hong Kong listed firms rise 19% to 102, Grant Thornton says
Long-suspended Hong Kong listed companies rose 19 per cent to 102 by end of August, according to Grant Thornton. Delistings exceeded resumptions for the first time in three years. Fraud allegations triggered by auditors surged to 66 per cent, with asset overstatement the top concern.
The number of long-suspended Hong Kong listed companies on the Main Board and GEM rose 19 per cent to 102 by the end of August this year, from 86 in 2025, according to accounting firm Grant Thornton.
The firm released a report on fraud allegations and trading suspensions among Hong Kong listed companies on Wednesday. It also revealed that during the 12 months ended 31 August 2026, 35 prolonged suspended companies were delisted while 21 resumed trading, marking the first time in three years that delistings have surpassed resumptions.
Alleged fraud cases triggered by auditors surged to 66 per cent from 46 per cent a year earlier and made up 70 per cent of all suspensions. The nature of auditor concerns has also shifted: asset overstatement was the most prevalent issue at 38 per cent, followed by asset misappropriation at 19 per cent, signalling sharper scrutiny over asset valuations and potential misuse of corporate resources, according to the report.
Barry Tong, national leader of Forensic Investigation Services at Grant Thornton China, said regulators have tightened resumption rules, lifting the time cost for affected firms' compliance remediation. He added that the remediation environment is more challenging as market scrutiny focus has clearly shifted from earnings performance to asset authenticity.
Meanwhile, the Securities and Futures Commission (SFC) has relied more on its suspension power, with three firms recently suspended. Its upcoming rule of post-listing conditions — an alternative to suspensions — may bring more interventions, probes and inquiries, Grant Thornton Hong Kong forensic partner Kenneth Lam said.
"Surviving a halt demands early forensic engagement and a total governance reset to rebuild market credibility," Tong said.
