The "Dual Audit" Policy Of Mainland Listed Companies In Hong Kong Will Be Abolished.

12 large mainland accounting firms were allowed to adopt the mainland auditing standards.

The China Securities Regulatory Commission announced yesterday that the Ministry of Finance and the securities and Futures Commission's mainland accounting firm engaged in the audit recommendation Committee of H-share enterprises, held a meeting with Shenzhen financial affairs and Treasury Bureau, Hongkong Securities Regulatory Commission, The Stock Exchange of HongKong Limited, Hongkong financial remittance board and Hongkong society of Accountants on 7 March, to reach a consensus on the implementation of local accounting standards for the mainland and Hongkong companies to prepare financial statements and audit by local accounting firms in accordance with local auditing standards on the same day in Hongkong.

Taking this as a sign, mainland large accounting firms are allowed to provide audit services for mainland listed companies in Hong Kong during the fiscal year ended in December 15, 2010 or after the completion of the accounting year. The "double audit" policy of H-share will be abolished, and the exchange and cooperation between Hongkong and inland accounting will reach a new level.

It is understood that there are 12 large mainland accounting firms that have been allowed to engage in the audit of H-share enterprises. They are: Lixin Accounting firm, Tianjian accounting firm, Lixin Dahua accounting firm limited, Xin Yong Zhong accounting firm limited, Ernst & Young Huaming accounting firm, Guo Fu Hao Hua accounting firm limited, Kyoto Tianhua certified public accountants Co., Ltd., PWC Zhongtian accounting firm, DDT Huamin accounting firm, KPMG Huazhen accounting firm, Sino Swiss Elly Leung accounting firm and Daxin accounting firm limited.

Practitioners believe that the mainland's large accounting firms are allowed to engage in H-share business auditing, which is an equivalent institutional arrangement between Mainland and Hongkong based on accounting auditing standards. It is an important measure to deepen accounting exchanges and cooperation between the mainland and Hongkong. It will help to reduce paction costs of mainland listed companies in Hong Kong, promote prosperity and stability of Hongkong's capital market, and promote win-win cooperation and common development between the mainland and Hongkong accounting industry.