Lufax Holding Ltd (NYSE: LU and HKEX: 6623), a leading financial services enabler for small business owners in China, saw its shares plunge 6.07% in Wednesday's trading session. The sharp decline came on the heels of the company's announcement regarding a significant change in its auditing arrangements.

At an extraordinary general meeting held in Shanghai on June 25, 2025, Lufax shareholders approved the removal of PricewaterhouseCoopers and PricewaterhouseCoopers Zhong Tian LLP as the company's auditors. In their place, Ernst & Young and Ernst & Young Hua Ming LLP were appointed as the new auditors, effective until the annual general meeting for the year ending December 31, 2025. The Board has been authorized to fix the new auditors' remuneration.

While Lufax has not provided specific reasons for this change, such moves can often raise concerns among investors. Changes in auditors can sometimes signal potential disagreements over accounting practices or financial reporting, which may have contributed to the negative market reaction. However, it's important to note that auditor changes can also occur for various other reasons, including cost considerations or the need for fresh perspectives. As the market digests this news, investors will likely be watching closely for any further developments or explanations from Lufax regarding this transition.