PKF International has admitted Daxin, one of
China’s largest CPA firms, as its Chinese member firm. The
admission was sealed at a signing ceremony at Beijing’s Great Hall
of the People.

With 23 equity partners, 10 salaried partners
and around 1,500 staff, Daxin has been ranked as China’s sixth
largest domestic CPA firm by the Chinese Institute of Certified
Public Accountants.

The firm is expected to report CNY600 million
($90 million) this financial year and has ambitions to increase its
staff to 3,000 to exceed revenues of CNY1 billion within three
years.

Daxin is a domestic audit and assurance firm
with clients across a range of sectors, including chemicals,
electronics, heavy engineering and manufacturing. It has also
provided listing and IPO services for over 300 enterprises and is
one of a handful of private firms in China to undertake securities
and futures work.

Daxin operates in 14 cities across Mainland
China and has had a close working relationship with PKF’s Hong Kong
firm for several years.

MoF plans

China’s Ministry of Finance (MoF) plans to
develop 5-10 ‘super big’ domestic public accounting firms within
the next decade to take on the Big Four in China. The government is
doing this to tackle what it perceives to be Big Four market
concentration that exists in most developed markets. This has led
to several mid-tier networks partnering with large Chinese firms in
the past year.

PKF International Asia-Pacific regional
director Stephen Darley says the network is keen to make sure they
are party to these plans. Darley told the International
Accounting Bulletin the MoF described the union as a
‘marriage’ of equals with mutual benefits for both parties. Darley
said Daxin is PKF’s exclusive Chinese firm and the network would
help it grow.

In January, the International Accounting
Bulletin ranked PKF International as the 11th largest global
accounting network with combined member firm revenue of $1.9
billion. PKF International said combined revenue has grown by about
25 percent to $2.4 billion this year, and the network harbours
ambitions to become a top 10 network by 2011.