Hong Kong exchange, securities regulator give listed companies until mid-May to have books audited amid Covid-19 travel restrictions

Hong Kong’s stock exchange operator will allow companies listed on its main board to defer the publication of their annual reports until mid-May because of the Covid-19 outbreak, if they release to the public a set of preliminary results, or key financial information, by the end of this month.

The companies in question must also provide an estimated timeline on when they expect to publish their audited annual results, and explain the factors they have considered in support of their expectations, bourse operator Hong Kong Exchanges and Clearing (HKEX) and securities watchdog Securities and Futures Commission (SFC) said on Monday.

In normal circumstances, companies listed on the main board with December 31 as their year-end must issue annual reports, including audited financial statements, by April 30. The deadline for companies listed on the secondary GEM board is March 31.

“The challenges arising from the Covid-19 pandemic are unprecedented and the SFC and the HKEX are cognisant of the challenges that market participants have been facing under the circumstances,” they said. “In view of the severity of the outbreak, it is necessary and appropriate to encourage market participants to accord priority to the health and safety of all concerned, including the accounting and other personnel of listed issuers and auditors carrying out their work.”

Deferments of up to 60 days starting from Monday, March 16, will be considered on a case-by-case basis.

The key financial information that companies must furnish includes their assets, liabilities, income and expenses, as well as changes in shareholders’ equity, as well as discussions of financial performance and the impact of major events and transactions.