The Chinese Ministry of Finance (MoF) has
chosen 12 mainland accounting firms to receive a coveted H-share
license after a successful a pilot programme.
The MoF’s decision comes after Hong Kong
Exchanges and Clearing Limited, operator of the local stock
exchange, agreed to allow Mainland firms to sign off audits of
Chinese incorporated companies also listed on the Hong Kong Stock
Exchange from 15 December.
Firms selected to receive a H-share license
are: BDO Shu Lun Pan, BDO China Li Xin Da Hua, Crowe Horwath China,
Daxin Certified Public Accountants – a PKF International member
firm, Deloitte, Ernst & Young, Grant Thornton China, KPMG,
Pan-China CPA, PwC, RSM China and ShineWing.
In the past, two separate sets of accounts and
two separate auditors have been required, one for each
jurisdiction.
“For companies already listed in both mainland
China and Hong Kong, this long awaited move will mean they no
longer have to prepare two separate sets of accounts or pay audit
fees twice over,” Grant Thornton China chief executive Xu Hua
said.
“Chinese companies seeking a listing will
benefit from a wider choice of auditor. And as more Chinese
companies seek to raise finance from the capital markets through
IPOs, we believe this new system will make it easier for Chinese
companies to list in Hong Kong.”
Mainland firms have been forging closer ties
with the Hong Kong network partners for some time. The move to
allow Mainland firms to audit H-share clients will provide greater
competition to Hong Kong firms and should encourage even greater
consolidation in the market.
