China Property Developers: “When developers change auditors ahead of their full-year results season, it typically raises red flags regarding potential auditing issues and should lead to serious market concerns…”

• A slew of Chinese real estate developers this week said they are either not able to release their financial results on time or have yet to set board meetings.
• Among them was troubled property developer Evergrande that hit markets last year with its debt crisis.
• In a filing to the Hong Kong exchange on Tuesday, Evergrande said that due to the “drastic changes” in its operational environment since the second half of 2021, its auditor added “a large number of additional audit procedures” this year.
• Other developers cited the resignation of auditors for failing to issue their financial year 2021 earnings on time, according to Japanese bank Nomura.

A slew of Chinese real estate developers said this week that they are either not able to release their financial results on time or have yet to set board meetings for them.

Among them is troubled property developer Evergrande which shook investment markets last year as a result of its debt crisis.

The developers gave a variety of reasons for not being able to do so.

In a filing to the Hong Kong exchange on Tuesday, Evergrande said that due to the “drastic changes” in its operational environment since the second half of last year, its auditor added “a large number of additional audit procedures” this year.

www.cnbc.com/2022/03/22/china-property-developers-evergrande-cant-release-earnings-on-time.html