FINANCE

Hong Kong Flags Last-Minute Auditor Resignations

Published: Mar. 19, 2026 5:10 p.m. GMT+8

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The Hong Kong Securities and Futures Commission. Photo: IC Photo

Hong Kong’s securities regulator has warned that a wave of last-minute auditor resignations may signal deeper governance risks, urging the city’s stock exchange to tighten oversight.

In a review of the Hong Kong Stock Exchange, the Securities and Futures Commission (SFC) said such resignations, especially close to results announcements, should be limited to extreme circumstances.

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Hong Kong’s SFC warned about 89 last-minute auditor resignations in 2024, often citing fee disputes, which may mask deeper governance issues.
The regulator criticized the stock exchange for inconsistent follow-up on disclosures and audit quality after such resignations.
SFC recommended tighter oversight, shareholder approval for auditor resignations, earlier audit fee agreements, and increased scrutiny of suspicious cases.

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