China

Internal controls assistance in relation to Hong Kong Listing application (PN21 engagement) 

The application of listing on Stock Exchange of Hong Kong (SEHK) with respect to Listing of Securities in Practice Note 21 (PN21) requires the Sponsor to conduct due diligence of the Listing Applicant to enable the Sponsor to declare to the SEHK that the Listing Applicant has established procedures, systems and controls (including accounting and management systems) which are adequate in regard to the obligations of the Listing Applicant and its directors to comply with the Listing Rules and other relevant legal and regulatory requirements (in particular rules 13.09, 13.10, 13.46, 13.48 and 13.49, Chapters 14 and 14A and Appendix 16), and that the Sponsor has ensured that those procedures, systems and controls are sufficient to enable the Listing Applicant's directors to make a proper assessment of the financial position and prospects of the Listing Applicant and its subsidiaries, both before and after listing. This requirement includes an assessment of the new applicant's compliance manuals, policies and procedures including corporate governance policies and any letters given by the reporting accountants to the Listing Applicant that comment on the Listing Applicant's accounting and management systems or other internal controls.

KPMG has extensive experience in providing pre-listing internal controls assistance to a number of Listing Applicants and Sponsors. Our approach leverages on a holistic view of total due diligence efforts to enable sponsors to fulfil their obligations under PN21 effectively and efficiently. Our proprietary methodology can be readily implemented, clearly communicated, scaleable, and can be applied at all levels of the organisation. Our RAS professionals will share the extensive experience in providing professional services to assist organisations to improve their corporate governance practices, risk management framework and internal control systems to share leading practices with the Listing Applicant.

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