Deloitte resigns as auditor for 50 Hong Kong-listed companies to focus on high-growth mainland firms
- Resignations cut the number of listed companies it audits from about 350 to 300
- Deloitte to hire 2,300 more people in China, including about 300 in Hong Kong, this year
Deloitte, one of the Big Four international accounting firms, has resigned as an auditor for 50 Hong Kong-listed companies this year to focus on higher-growth companies, according to newly appointed China chairman Dennis Chow Chi-in.
The resignations cut the number of listed companies it audits from about 350 to about 300. In terms of revenue, the reduction represents a very small percentage of Deloitte China’s combined audit and advisory sales as these companies are relatively small.
Its audit income has dropped to only 35 per cent of all its businesses, down from more than 60 per cent a decade ago. The rest is from advisory services.
“This is part of our client portfolio rebalancing as we want to focus on serving bigger customers who are market leaders as well as the high-growth companies, ” Chow said in an interview.
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