Long suspended HK-listed firms rise 19pc to 102: Grant Thornton

Long suspended Hong Kong listed companies on the Main Board and GEM rose 19 percent to 102 by the end of August this year, from 86 in 2025, Grant Thornton said.

The accounting firm released a report on fraud allegations and trading suspensions among Hong Kong listed companies on Wednesday, also revealing 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 percent from 46 percent a year earlier and made up 70 percent of all suspensions. The nature of auditor concerns has also shifted: asset overstatement was the most prevalent issue at 38 percent, followed by asset misappropriation at 19 percent, 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, adding that the remediation environment is more challenging as market scrutiny focus has clearly shifted from earnings performance to asset authenticity.

Meanwhile, the 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.

Frank Feng

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