Mainland growth adds to global demand
The world, and China in particular, needs accountants, according to Geoff Rankin, chief executive of CPA Australia.
Demand for accounting professionals on a global level has run ahead of the available workforce as the movement towards tighter financial controls and higher standards of corporate governance has led to a greater demand on resources.
Mr Rankin said the shortage of accountants in China was acute because the country's continued integration into the global marketplace and strong economic growth had created a potent tonic.
Mr Rankin, who was recently in Hong Kong on a tour around Asia promoting the CPA Australia designation, said China had only around 70,000 registered practising accountants and another 70,000 non-public practising accountants, and that was 300,000 short of an accounting workforce large enough to manage the nation's books.
Other observers had said that this staggering shortfall could not be met even if Britain's entire population of qualified accountants relocated to China.
'The market for accountants in China is very strong and the main driver of demand has been the country's phenomenal economic growth,' Mr Rankin said.
He said there were more than 11 million registered enterprises in China and the number was expanding in tandem with the economy. Many of these companies, he said, were looking to tap international sources of funding to expand business and, as such, required accountants with experience of international accounting standards and sufficient legal and regulatory expertise to prepare them for an overseas listing.
About 56 mainland companies made initial public offerings on the Hong Kong stock exchange, the most popular destination for Chinese overseas listings, last year. This hive of listing activity caused Hong Kong to overtake New York as the second most active stock exchange for listings, behind London, Mr Rankin said.
Demand for accountants is not restricted to IPOs however. Mr Rankin said foreign investment in China, and increasingly Chinese investment abroad, provided significant impetus for growth in demand for accountancy manpower.
'In the past, observers have been very much focused on foreign investment in China, as overseas organisations venturing into the mainland needed locally based, accredited accountants. But now we're also seeing former state-owned Chinese companies going the other way and entering western markets. This is creating a push-pull need for internationally recognised accountants.'
Accountants relocating from Hong Kong, Singapore, Australia and other countries, who are more familiar with international practices, were helping to meet demand for globally recognised accountancy services in China, but Mr Rankin said qualified mainland accountants would probably take advantage of globalisation to spread their wings.
'Over time, we will see an increase in mobility in accountancy, both of individuals and practices around the globe.' he said.
