'Simple' reports to spark complaint
The stock exchange is to make a formal complaint to the Hong Kong Society of Accountants (HKSA) over its reports into three cases of suspected fraud by listed companies, according to sources.
The exchange was dissatisfied with the standard of the reports, they said.
Sources said the exchange's listing committee had made the decision to complain at a meeting yesterday.
'The reports are too simple. They have written them only according to some general materials such as annual reports, which even the public can get,' one source said.
The stock exchange has passed at least 11 cases of material misstatements in listed company accounts to the HKSA for review in the past eight months.
The society, the accountancy profession's self-regulatory body, set up a task force, which reported back on three of the cases last week.
Sources said the reports had been written by the HKSA's Professional Standards Monitoring Committee, which had no statutory power to investigate the cases.