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Brokers hit out at Hong Kong Stock Exchange trading proposals

New rules would automatically suspend shares of companies with adverse auditor comments

The Hong Kong Stock Exchange has proposed automatic trading suspensions for companies that have negative opinions from their auditors appended to their financial reports.   © Reuters

HONG KONG -- Hong Kong stockbrokers have raised the alarm over new rules proposed by the city's stock exchange operator that would automatically suspend trading in companies whose auditors have issued unfavorable comments on their financial statements.

The Hong Kong Securities Association, an industry group with more than 1,100 members from roughly 350 companies representing more than 70% of the city's stockbrokers, says the rules would curtail investors' freedom of action, potentially damaging the value of their holdings.

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