The Zhitong Finance App learned that Grant Thornton (Hong Kong) Certified Public Accountants's research report on Hong Kong listed companies facing fraud allegations and suspensions showed that as of August 31, 2026, the total number of long-term suspended Hong Kong listed companies covering the Main Board and GEM increased by 19% to 102, up from 86 in 2025 and 80 in 2024. In the 12 months up to August 31, 2026, 35 long-term suspended companies were delisted, while only 21 successfully resumed trading (compared with 29 delisting pairs in 2025 and 43 resuming of 39 delisting pairs in 2024), marking the first time in three years that the number of delistings exceeded the number of resumes.
The pressure on GEM issuers is particularly heavy. Seven GEM companies were suspended beyond the remedy period in 2026, a significant increase from the single case in 2025 and 2024, highlighting the increasingly severe difficulties faced by smaller issuers to meet the conditions for resumption within the required time frame. The continuous suspension remedy period for companies listed on the Main Board is 18 months, while the recovery period for GEM listed companies is 12 months.
The number of suspected fraud cases triggered by auditors rose sharply from 46% in 2025 to 66% in 2026, and accounted for 70% of all suspended trading cases (51% in 2025). As of August 31, all cases triggered by auditors in 2026 are still suspended. There has also been a shift in the nature of the auditors' concerns. Asset exaggeration was the most common concern, accounting for 38%, followed by misappropriation of assets (19%). This reflects increased market scrutiny of asset valuations and potential misappropriation of company resources.
Tang Biao, head partner of China's forensic investigation services, said that some listed companies have increasingly serious fraud problems, such as falsification of bank statements and illegal loss of listed funds. In response, regulators have comprehensively tightened the requirements for resuming trading, which has led to a significant increase in the time and cost required for the companies involved in the case to carry out compliance and rectification. Against the backdrop of an increase in the number of long-term suspensions, an increase in delisting rates, and all cases triggered by auditors that are still mired in suspension impasse, the rectification environment is becoming more challenging. The focus of market review has clearly shifted from profit performance to asset authenticity. When nearly 60% of auditors are concerned about the exaggeration or misappropriation of assets, this is no longer simply an accounting dispute, but a fundamental survival issue relating to whether the declared assets actually exist.
As to why the total number of Hong Kong listed companies suspended for a long time in the past year increased by 19% to 102, Tang Biao estimates that it may be related to the strengthening of supervision by regulators and the deterioration of the external economic environment.
Also, there are still frequent changes in directors. Within 6 months of triggering by the auditor, only 46% of companies recorded no changes in directors, while cases involving changes in executive directors and independent non-executive directors rose to 18%. The percentage of auditors replaced after triggering rose from 17% in 2025 to 44% in 2026. Mainland China remains the main operating base for most of the challenged companies.
Grant Lam Siu-ki, Hong Kong Forensic Investigation Service Partner, said, “Changing directors or auditors after the company's trading has been suspended will not resolve the fundamental audit alarm. Given that most suspended companies operate in mainland China, resolving cross-border audit issues requires the board of directors to maintain stability, carry out real on-site asset checks, and implement comprehensive governance restructuring to rebuild regulatory trust.”
Cases of suspension of trading triggered by shareholders and management rose from 15% in 2025 to 17% in 2026, while cases involving regulators and law enforcement agencies fell sharply by 21 percentage points to 13%. All cases triggered by regulators and law enforcement authorities were suspended in 2026, while 50% of the relevant cases in 2025 were suspended for 12 to 18 months, and another 33% were delisted. There has been an increase in the number of cases where the Hong Kong Securities Regulatory Commission uses section 8 (1) to suspend trading. In the first ten months of 2026, three companies were suspended under this provision, compared to one for the whole of 2025. Section 8 (1) empowers the Hong Kong Securities Regulatory Commission to directly order the suspension of stock trading if it believes there is false or misleading information, market disorder, or if necessary to protect investors.
Regulatory action has also clearly moved towards more transparent disciplinary action. The proportion of public statements to listed companies rose from 36% in 2024 to 65% in 2025, while private declarations fell 17 percentage points to 25% in 2025.
Tang Biao concluded: “The increase in cases where Section 8 (1) was used to suspend trading and issue public statements shows that regulators have clearly moved to intervene immediately and strengthen market deterrence. Resuming trading is no longer just formal paperwork. As delisting cases rise and asset reviews tighten, companies must conduct early forensic investigations and comprehensively restructure corporate governance to restore market credibility if they want to survive the suspension quagmire.”