China Forestry's auditor resigns amid accounting irregularities

KPMG has resigned as the auditor of China Forestry Holdings as a result of the accounting irregularities that the firm identified more than 12 months ago, the company said in an announcement to the Hong Kong stock exchange. The stock has been suspended from trading since January 26 last year and the resignation of the auditors suggests there is no reprieve in sight for shareholders who want to sell.

Despite the swift removal by the company of its CEO and the appointment of an independent board committee to investigate the issues after the irregularities were first brought to light, there are still a number of outstanding matters with regard to...