Hong Kong Stock Exchange Censors China Carbon Neutral Development Group

The Hong Kong stock exchange censured China Carbon Neutral Development Group and seven directors on November 3. The censure followed findings that the company overstated its carbon-credit assets by HK$58.7 million, making its financial losses appear substantially smaller than they were. The exchange determined the company's actual loss was HK$70 million, significantly higher than the reported HK$11.3 million. The company and all seven directors accepted the sanctions without contesting the violations.

The findings relate to the valuation of carbon-credit assets, which are quantities of reduced or removed greenhouse gas emissions that affect financial results. The exchange also found that the company failed to disclose two significant transactions on time.