To: Kelvin Lam, Manager of Accounting Department
From: Bobo Chan, Assistant
Subject: Professional Seminar Summary
I have attended the seminar and below is the summary of the seminar.
The seminar was held at the CYT LT1 at 12:30 pm on Wednesday 24th January,
conducted by Roy Leung, the partner of KPMG. He gave a speech about the
accountants’ role in the capital market.
First, Mr Leung believed that the capital market provides the opportunity for
the existence of accountants. It is because companies need to disclose a lot of
information to its investors, they must make sure the accuracy and completeness
of the information provided. Therefore, Mr Leung said the accountants can
provide information such as profit forecast and working capital forecast in an
IPO. He pointed out that there is a close connection between the capital market
and the accountants.
Mr Leung then provided some data about the capital market in Hong Kong.
Hong Kong was the third largest IPO rankings in 2017 and had a record of 174
new listing company where funds were raised the amount to HK $128 billion, he
concluded that the capital market in Hong Kong is still attractive to many
organizations around the world. Mr Leung also said among different industries,
the infrastructure industry has the largest number of listings, it was because
this industry has been greatly supported by the government. On the other hand,
the financial service sector has the largest amount of funds raised through the
IPOs, around 53% of the total funds raised. Mr Leung indicated that the emerge
of Fintech companies has taken up around one-third of the funds raised, and
believed that in 2018, there will be more Fintech companies to be listed in
Hong Kong. In the future, Mr Leung believed that the capital market in Hong
Kong has a promising future that will remain one of the three top listing
Next, Mr Leung has described the four steps of the listing application
process, he said that the preparation works normally last for 3 to 12 months,
and the whole process may need 1.5 years or above. He said that the listing
application requires a lot of paperwork and professional judgment, Leung
emphasized the importance of the accountants.
Finally, Mr Leung has shared his own experience as an audit partner in the
capital market. He needs to make audit planning, client evaluation, etc. He
said being an audit is not only about checking the accuracy of the numerical
values, but to understand the client’s business, Leung told us it is the key to
be an auditor. Leung has predicted that company would more rely on the
accountants in the future because of the increased regulations imposed by the
government. For people who want to be accountants in the future, Leung encouraged
us to maintain a work-life balance.
If you have further questions, please feel free to ask me.