(Bloomberg) -- Hopson Development Holdings Ltd.’s dollar bonds were poised for record lows and its shares plunged, after the developer said that its auditor agreed to resign.
The firm’s note due 2023 fell 10.5 cents on the dollar to 81.8 cents, its biggest drop on record, according to Bloomberg-compiled prices Friday morning in Hong Kong. Its shares fell as much as 31%, also on pace for a record decline.
Hopson said late Thursday that its auditor, PricewaterhouseCoopers, agreed to resign, with the professional services firm saying it did not receive sufficient information to complete auditing procedures.
“Hopson’s near-term refinancing prospects and investor sentiment may be hurt on its disclosure,” Bloomberg Intelligence analysts Andrew Chan and Hui Yen Tay wrote in a note. Hopson and PWC did not immediately respond to requests for comment when reached by phone.
Hopson had remained relatively immune to the credit crisis that has engulfed the real estate sector. Still, there are growing investor concerns about the transparency of better developers and the sector’s hidden debt.
The upcoming earnings season is likely to reveal further pressure points for borrowers as auditors examine the books for the first time since authorities’ clampdown on the debt-fueled industry prompted a wave of defaults.
The firm and its subsidiaries have $880 million in outstanding offshore notes, including a HK$720 million ($92.4 million) due July, Bloomberg-compiled data show.
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