CHINA is drafting regulations to govern operations of joint ventures by international accountancy firms and hasten localisation of the profession.
The rules, which will be promulgated by the Ministry of Finance (MOF) early next year, will cover four major areas. They include provisions for the management of accountancy joint ventures and representative offices.
They also will permit the ventures to open branches and Chinese certified public accountant (CPA) firms to become members of international counterparts.
Named as interim regulations, they will be the first legal framework for international accountancy joint ventures since the first one was allowed to establish three years ago.
There are so far eight accountancy joint ventures in the mainland, formed by the international big six, Kwan Wong Tan & Fong of Hong Kong and Grant Thornton. But only Horwath International has been allowed to have a Chinese member firm.
'Overall, I welcome the regulations - the four proposals,' Coopers & Lybrand China chairman John Stuttard said.