China dairy firm halts trading after auditors quit

HONG KONG, March 22 Wed Mar 21, 2012 10:13pm EDT

HONG KONG, March 22 (Reuters) - Trading in shares of Chinese milk formula products producer Daqing Dairy Holdings Ltd was suspended on Thursday after the company's auditors resigned, the second accountant departure from a Hong Kong-listed Chinese company this month.

Daqing, with a market value of about HK$1.7 billion ($218.95 million), did not identify the auditors and gave no details about the resignation. Company officials were not immediately available for comment.

Deloitte Touche Tohmatsu was named as an auditor of Daqing in the company's latest interim report.

The resignation came just days after Deloitte resigned as auditor of Boshiwa International Holdings, which holds the licence to make Harry Potter- and Bob the Builder-branded clothes, saying it was not satisfied with the company's response to questions about some of its transactions.

Boshiwa's shares have been suspended since March 16.

Deloitte's resignation as auditor of the childrenswear company was seen as the first in a run of accountant departures from Chinese companies expected in the coming weeks as the audit season draws to an end.

Shares of Daqing, which plunged 45 percent last year, have risen nearly 16 percent this year.

($1 = 7.7645 Hong Kong dollars) (Reporting by Donny Kwok; Editing by Nick Macfie)

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