Accountants banking on China's rise open an office in Beijing

The bean-counter industry may well be the professional sector that has benefited the most from China's economic reforms over the past 30 years. The sector's increasing involvement in the mainland is now encouraging international accounting bodies to increase their exposure in the country.

The latest is the Institute of Chartered Accountants of England and Wales, the world's second-oldest accounting body, which was established in 1880. Last week the ICAEW, which provides industry training and helps maintain professional standards, opened its doors in Beijing. The Greater China regional headquarters is headed by Douglas Lau.

'Opening the Greater China regional office in Beijing will serve our members in a better way,' said Gerald Russell, president of ICAEW. Thirty years ago no international accounting organisation would have thought about China. But things have changed dramatically. The Hong Kong Institute of Certified Public Accountants (then the Hong Kong Society of Accountants) was set up in 1973 with only a handful of members. It now has 31,000.

Many of the Big Four firms had only 800 or 900 people back then but now all have 9,000 to 15,000 staff serving the Greater China market.

The reason behind the expansion is simple. Before China opened up, there was no real need for accountants to work there. Economic reform has brought the need for professional advice. Hong Kong accountants were not serving only the city but the mainland as well. After China became the world's second-largest economy last year, many international accounting firms believed it was only a matter of time before China topped the US and Britain to become the largest practice area.

The ICAEW, which has 136,000 members worldwide including 26,000 overseas, is not a household name in Hong Kong or China. But it is well respected in the accountancy sector with many well-known Hong Kong accountants among its members. Many of them studied in Britain and joined the body there.