The Zhitong Finance App learned that Lai Cuibi, CEO of the Hong Kong Financial Services Council, said that an open letter was issued earlier due to the rapid growth in IPO activities and the ongoing audit requirements of about 2,700 listed companies. She pointed out that the open letter was a holistic, preventive measure, and was not directed at a specific project or firm. The Hong Kong Finance and Finance Bureau does not rely on just a letter, but continues to follow up on how the firm handles new projects through routine inspections (checks), and at the same time strengthens the coverage of the IPO work after the fact. There are currently no large-scale or serious issues.
There were problems with some “half-generation shares” after listing, or the quality was questioned by the market. Lai Chuibi pointed out that the Hong Kong Stock Exchange (00388) is mainly responsible for pre-approval. The Hong Kong Finance and Finance Bureau focuses on quality monitoring after the audit is completed, will strengthen IPO-related work during inspections and investigations, and maintain communication and collaboration with other traditional regulators.
Regarding the April PWC enforcement case, she pointed out that the relevant firm is actively rectifying it in accordance with the procedures. Regarding the Hong Kong Stock Exchange's proposal to extend the “Name and Shame” mechanism to other professional stakeholders such as lawyers and accountants, she said that if the principle covers all relevant stakeholders, the Hong Kong Financial Services Bureau supports it in principle. The auditor signs the report, has a great responsibility, and professional integrity is indispensable.