https://www.scmp.com/rss/325181/feed en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Enoch Yiu Enoch Yiu Some financial firms have stepped up hiring amid a market rally and a revival in initial public offerings (IPOs), though others continue to trim headcounts to rein in costs, industry participants say. Hong Kong’s financial sector added about 4,800 jobs in the 12 months to the end of September, taking total employment across banks, asset managers and brokerages to 204,000, up 2.4 per cent from 199,200 a year earlier, according to the Census and Statistics Department. Including the insurance... https://www.scmp.com/business/article/3344131/hong-kong-finance-hiring-rises-ipo-revival-cost-cuts-persist?utm_source=rss_feed https://www.scmp.com/business/article/3344131/hong-kong-finance-hiring-rises-ipo-revival-cost-cuts-persist?utm_source=rss_feed Mon, 23 Feb 2026 00:30:10 +0000 Alice Li Alice Li China has ramped up audits involving online influencers and high-wage earners, as part of broader efforts to expand tax revenue and refine the taxation system. The State Taxation Administration on Wednesday spotlighted two fresh cases involving influencers in the centrally administered city of Chongqing and in Gansu province. In Chongqing, authorities ordered an influencer surnamed Peng – who has 30 million followers and works in online video production and commercial advertising – to pay 4.15... https://www.scmp.com/economy/china-economy/article/3340007/china-targets-wealthy-influencers-audits-fines-fiscal-pressures-rise?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3340007/china-targets-wealthy-influencers-audits-fines-fiscal-pressures-rise?utm_source=rss_feed Thu, 15 Jan 2026 12:00:09 +0000 Enoch Yiu Enoch Yiu Hong Kong-based accounting firms plan to continue expanding their workforce in 2026, hoping to attract newly minted accountants, even as the industry steps up the adoption of artificial intelligence, according to industry players. “We do not believe AI is a replacement for humans, and we have not seen any reduction in hiring in the past nor do we plan to [reduce hiring] in future,” said Andrew Wong, partner of audit quality and professional practice at KPMG China. “We see AI and our people as... https://www.scmp.com/business/banking-finance/article/3337933/hong-kong-accounting-firms-plan-hiring-spree-and-embrace-ai-attract-talent?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3337933/hong-kong-accounting-firms-plan-hiring-spree-and-embrace-ai-attract-talent?utm_source=rss_feed Mon, 29 Dec 2025 04:00:10 +0000 Enoch Yiu Enoch Yiu Hong Kong and mainland China are set to see more corporate restructuring and liquidation in commercial real estate, restaurants and retail shops in 2026 due to the weak economy and changes in consumer behaviour, according to veteran liquidator Derek Lai Kar-yan. The challenging economic environment, however, provides opportunities for experts like Lai, 60, who is known in the industry as the “King of Liquidation”. He left Deloitte after 36 years with the firm and last week was appointed by EY as... https://www.scmp.com/business/companies/article/3336386/hong-kong-see-more-debt-restructuring-amid-weak-economy-says-king-liquidation?utm_source=rss_feed https://www.scmp.com/business/companies/article/3336386/hong-kong-see-more-debt-restructuring-amid-weak-economy-says-king-liquidation?utm_source=rss_feed Mon, 15 Dec 2025 23:30:10 +0000 Yulu Ao Yulu Ao Deloitte China plans to hire about 1,000 people in Hong Kong and invest HK$500 million (US$64 million) over the next four years, as part of a new initiative that is expected to strengthen the city’s role as a regional talent and innovation hub. Called the “Hong Kong LEAP” strategy, the initiative is focused on expanding the company’s capabilities in fintech, capital markets operations and artificial intelligence – areas that would be key to driving the city’s next phase of economic... https://www.scmp.com/business/china-business/article/3331081/deloitte-china-hire-1000-staff-invest-us64-million-hong-kong-over-next-4-years?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3331081/deloitte-china-hire-1000-staff-invest-us64-million-hong-kong-over-next-4-years?utm_source=rss_feed Fri, 31 Oct 2025 10:30:14 +0000 Enoch Yiu Enoch Yiu Hong Kong's audit regulator imposed a combined HK$1.9 million (US$245,000) fine on Deloitte Touche Tohmatsu and two of its partners for multiple audit deficiencies related to two former listed companies from 2011 to 2013, the authority said on Thursday. The move was part of the first batch of disciplinary cases from the Accounting and Financial Reporting Council (AFRC) with the help of the mainland’s Ministry of Finance (MOF). “The successful completion of these disciplinary cases attests to the... https://www.scmp.com/business/banking-finance/article/3323541/hong-kong-audit-regulator-imposes-fine-us245000-auditor-deloitte?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3323541/hong-kong-audit-regulator-imposes-fine-us245000-auditor-deloitte?utm_source=rss_feed Thu, 28 Aug 2025 13:01:37 +0000 Cao Li Cao Li Wuliangye Yibin, China’s second-largest liquor distiller, reported its slowest earnings growth in a decade, reflecting the impact of an intensified anti-corruption campaign on ostentation and a slowing economy that has also affected its peers. First-half revenue of the Yibin, Sichuan-based company rose 4.2 per cent to 52.8 billion yuan (US$7.4 billion) from a year earlier, while net profit attributable to equity holders increased 2.3 per cent to 19.5 billion yuan, according to its earnings... https://www.scmp.com/business/companies/article/3323454/wuliangye-yibins-profit-growth-sinks-10-year-low-hit-chinas-austerity-drive?utm_source=rss_feed https://www.scmp.com/business/companies/article/3323454/wuliangye-yibins-profit-growth-sinks-10-year-low-hit-chinas-austerity-drive?utm_source=rss_feed Thu, 28 Aug 2025 05:51:20 +0000 SCMP Editorial SCMP Editorial A world-class financial centre like Hong Kong must maintain the highest auditing standards. So when the Accounting and Financial Reporting Council (AFRC) raises concerns about some practitioners in the profession, people better listen. The industry’s watchdog has complained that some of the smaller auditing firms may be accepting jobs from listed companies at a discount and close to reporting deadlines. This could lead to insufficient manpower and technical difficulties, thus compromising... https://www.scmp.com/opinion/comment/article/3321369/hong-kong-listed-firms-should-not-hire-auditors-based-only-lower-fees?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3321369/hong-kong-listed-firms-should-not-hire-auditors-based-only-lower-fees?utm_source=rss_feed Sun, 10 Aug 2025 22:45:09 +0000 Enoch Yiu Enoch Yiu The head of Hong Kong’s auditing watchdog has raised concerns that some auditors are accepting jobs from listed companies at cheaper rates and too close to reporting deadlines, warning that this could affect the quality of their work. The Accounting and Financial Reporting Council (AFRC) said that 17 per cent of the 2,631 Hong Kong-listed companies changed auditors last year. The AFRC also said that it had randomly checked the work of 16 replacement auditing firms. The regulator found that of... https://www.scmp.com/business/banking-finance/article/3320010/hong-kong-audit-watchdog-warns-quality-risks-amid-undercutting-and-tight-deadlines?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3320010/hong-kong-audit-watchdog-warns-quality-risks-amid-undercutting-and-tight-deadlines?utm_source=rss_feed Tue, 29 Jul 2025 10:23:20 +0000 Enoch Yiu Enoch Yiu Deloitte China will set up a new global office, increase headcount and invest in technology to support its mainland Chinese clients’ global expansion plans while helping them navigate geopolitical tensions, according to its new boss. “The current US-China tariff dispute presents a golden opportunity for Chinese companies to truly go global,” said Dora Liu, who took over as CEO of Deloitte China for the next four years on Sunday. “We see a trend of Chinese companies now expanding to Southeast... https://www.scmp.com/business/banking-finance/article/3312434/deloitte-china-launches-global-office-help-mainland-clients-navigate-trade-tensions?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3312434/deloitte-china-launches-global-office-help-mainland-clients-navigate-trade-tensions?utm_source=rss_feed Sun, 01 Jun 2025 01:30:19 +0000 Connor Mycroft Connor Mycroft The tax filing season in Hong Kong is in full swing, with June 2 marking the deadline for most individuals. Tax audits have come under scrutiny recently after at least 20 journalists raised concerns about “unreasonable” reviews targeting them and their families. The Inland Revenue Department (IRD) Commissioner dismissed these claims, stressing that assessment procedures were applied uniformly and did not target specific industries or individuals based on their background. The Post provides a... https://www.scmp.com/news/hong-kong/society/article/3311861/salaries-side-gigs-and-audits-how-navigate-hong-kongs-tax-system?utm_source=rss_feed https://www.scmp.com/news/hong-kong/society/article/3311861/salaries-side-gigs-and-audits-how-navigate-hong-kongs-tax-system?utm_source=rss_feed Mon, 26 May 2025 12:14:44 +0000 Edith Lin Edith Lin Over 26,600 notices issued by building authorities to homeowners for window inspection have not been addressed, of which 43 per cent have exceeded the compliance deadline by an average of 6.5 years, Hong Kong’s Audit Commission has found. According to the commission’s investigation report on the Buildings Department’s mandatory window inspection scheme, almost half of the 4,208 penalty tickets issued for failing to comply with the statutory notices were also unpaid and had not been referred to... https://www.scmp.com/news/hong-kong/society/article/3308541/hong-kong-auditor-finds-over-26600-window-inspection-notices-ignored?utm_source=rss_feed https://www.scmp.com/news/hong-kong/society/article/3308541/hong-kong-auditor-finds-over-26600-window-inspection-notices-ignored?utm_source=rss_feed Wed, 30 Apr 2025 09:15:52 +0000 Leopold Chen Leopold Chen More than half of Hang Seng Index’s constituent firms have voluntarily published their reports on sustainability performance last year, according to Hong Kong’s accounting regulatory body, which called on companies to hone their expertise in the field. Some 21 per cent of them obtained a “reasonable” grade from sustainability assurance auditors, while 53 per cent received a “limited” rating, the Accounting and Financial Reporting Council said in a report on Monday. The rest of them scored “mixed... https://www.scmp.com/business/china-business/article/3296590/hong-kong-accounting-body-calls-more-expertise-sustainability-practices?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3296590/hong-kong-accounting-body-calls-more-expertise-sustainability-practices?utm_source=rss_feed Tue, 28 Jan 2025 08:34:00 +0000 Yuke Xie Yuke Xie Businesses in Hong Kong are gearing up to expand and hire more employees next year amid expectations of higher revenue in a recovering economy, according to a survey by a professional accounting body. More than half of Hong Kong-based executives, accountants and other finance professionals expect a revenue increase at their firms next year, and hiring intentions have reached their highest level since 2020, CPA Australia said on Thursday. Underpinning this optimism is a positive outlook for the... https://www.scmp.com/business/article/3289523/hong-kong-businesses-plot-hiring-sprees-economy-perks-2025-survey-says?utm_source=rss_feed https://www.scmp.com/business/article/3289523/hong-kong-businesses-plot-hiring-sprees-economy-perks-2025-survey-says?utm_source=rss_feed Thu, 05 Dec 2024 10:00:37 +0000 Enoch Yiu Enoch Yiu Hong Kong will continue to play a critical role in connecting China with the rest of the world when it comes to the regulation of cross-border accounting regulation and talent development in the industry, according to Financial Secretary Paul Chan Mo-po. Since 2022, Hong Kong has been the nerve centre for the Public Company Accounting Oversight Board’s (PCAOB’s) annual inspections into the audits of US-listed mainland companies, which Chan said underscored the city’s crucial role in the process.... https://www.scmp.com/business/article/3288968/paul-chan-hong-kong-critical-bridge-between-china-and-world-accounting-sector?utm_source=rss_feed https://www.scmp.com/business/article/3288968/paul-chan-hong-kong-critical-bridge-between-china-and-world-accounting-sector?utm_source=rss_feed Mon, 02 Dec 2024 08:51:14 +0000 Mia Castagnone Mia Castagnone China’s vice-finance minister met the global chair of PwC in Beijing, after the accounting firm’s mainland unit was slapped with a hefty fine and suspended for six months, according to a finance ministry statement on Monday. Vice-Finance Minister Guo Tingting told PwC’s global chair Mohamed Kande during their meeting on September 19 that he hoped the Big Four firm would strictly abide by China’s laws and regulations, and adopt effective measures to correct mistakes, the statement said. Guo said... https://www.scmp.com/business/banking-finance/article/3280591/china-urges-pwcs-global-chair-strictly-abide-rules-and-regulations-after-evergrande-debacle?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3280591/china-urges-pwcs-global-chair-strictly-abide-rules-and-regulations-after-evergrande-debacle?utm_source=rss_feed Mon, 30 Sep 2024 11:57:26 +0000 Reuters Reuters PwC is making “tangible investments” to ensure the Big Four firm has high quality and sustainable business in China, it said in a memo to staff after Chinese regulators on Friday hit the company’s mainland unit with a record penalty. PwC Zhong Tian was hit with a six-month suspension and a fine of 441 million yuan (US$62 million) on Friday over the firm’s audit of failed property developer China Evergrande Group. Chinese authorities have been examining PwC’s role in Evergrande’s accounting... https://www.scmp.com/business/banking-finance/article/3278710/pwc-invests-high-quality-china-business-ensure-survival-after-us62-million-fine?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3278710/pwc-invests-high-quality-china-business-ensure-survival-after-us62-million-fine?utm_source=rss_feed Mon, 16 Sep 2024 08:07:50 +0000 Enoch Yiu Enoch Yiu PwC Zhong Tian, the China unit of the Big Four accounting firm, has been fined a record 441 million yuan (US$62.2 million) and banned for six months from undertaking auditing for its failures in checking the books of bankrupt developer China Evergrande Group. The penalty, the harshest imposed on any audit firm by China to date, is part of Beijing’s effort to tighten financial regulations and improve market integrity, analysts said. The PwC unit failed to detect the true financial condition and... https://www.scmp.com/business/article/3278419/china-slaps-pwc-record-us6216-million-fine-6-month-ban-evergrande-missteps?utm_source=rss_feed https://www.scmp.com/business/article/3278419/china-slaps-pwc-record-us6216-million-fine-6-month-ban-evergrande-missteps?utm_source=rss_feed Fri, 13 Sep 2024 09:18:05 +0000 Yuke Xie Yuke Xie Beleaguered property developer Country Garden dropped PricewaterhouseCoopers (PwC) as its auditor, in another setback for the firm that has lost more than 50 clients this year due to its link with the collapse of China Evergrande. Country Garden said in a Thursday filing to the Hong Kong stock exchange that it recommended PwC consider resigning as its auditor due to the firm’s failure to publish its financial results on time. PwC has agreed to step down; the resignation is effective... https://www.scmp.com/property/article/3277435/chinese-developer-country-garden-drops-pwc-its-auditor?utm_source=rss_feed https://www.scmp.com/property/article/3277435/chinese-developer-country-garden-drops-pwc-its-auditor?utm_source=rss_feed Fri, 06 Sep 2024 04:25:27 +0000 Enoch Yiu Enoch Yiu Last-minute resignations and failure to recognise potential problems are the two major issues affecting auditors’ credibility in Hong Kong, according to the Accounting and Financial Reporting Council (AFRC). Nearly a fifth of the investigations conducted on auditors were related to their late resignations, according to the audit regulator annual report on Wednesday. “Late resignation of auditors is an issue, as listed companies may not have sufficient time to find a replacement, or the incoming... https://www.scmp.com/business/banking-finance/article/3276290/late-resignations-lack-scepticism-tarnish-hong-kong-auditors-credibility-afrc?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3276290/late-resignations-lack-scepticism-tarnish-hong-kong-auditors-credibility-afrc?utm_source=rss_feed Wed, 28 Aug 2024 12:00:16 +0000 Yuke Xie Yuke Xie Liu Jin has resigned as the vice-chairman and president of China’s largest global bank, in a surprise move five months after his reappointment to the lender’s top executive job. Liu resigned for “personal reasons” from Bank of China, effective August 25, the state-owned bank said in a Sunday filing to the stock exchange, without elaborating. The bank’s Beijing spokespeople declined to comment. The move came as a surprise as Liu, born in 1967, has yet to reach the official retirement age of 60... https://www.scmp.com/business/banking-finance/article/3275889/liu-jin-resigns-bank-chinas-president-undisclosed-personal-reason?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3275889/liu-jin-resigns-bank-chinas-president-undisclosed-personal-reason?utm_source=rss_feed Mon, 26 Aug 2024 05:44:48 +0000 Enoch Yiu Enoch Yiu China is preparing to penalise PwC with the biggest fine ever imposed on a global accounting firm for its shortcomings in the audit of bankrupt developer China Evergrande Group, including a ban on taking on new clients and signing off accounts of mainland-based companies, according to people familiar with the matter. PwC Zhong Tian could face a fine of up to 500 million yuan (US$70 million) and a six-month nationwide ban on doing business for its alleged failure in scrutinising the accounts of... https://www.scmp.com/business/article/3275448/pwcs-china-unit-faces-record-us70-million-fine-6-month-ban-evergrande-failures?utm_source=rss_feed https://www.scmp.com/business/article/3275448/pwcs-china-unit-faces-record-us70-million-fine-6-month-ban-evergrande-failures?utm_source=rss_feed Thu, 22 Aug 2024 07:05:39 +0000 Enoch Yiu,Bloomberg Enoch Yiu,Bloomberg PwC, the former auditor of China Evergrande Group, is facing legal action from the collapsed developer’s liquidators, the latest setback for the accounting firm. The lawyers for the liquidators have started legal action against PwC and its mainland unit PwC Zhong Tian, according to Hong Kong court documents seen by Bloomberg. The lawsuit was filed in March and only recently made public. Liquidators launched court proceedings against PwC’s “negligence” and “misrepresentation” in auditing work.... https://www.scmp.com/business/banking-finance/article/3273530/evergrande-liquidators-start-legal-action-against-pwc-negligence-auditing-work?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3273530/evergrande-liquidators-start-legal-action-against-pwc-negligence-auditing-work?utm_source=rss_feed Wed, 07 Aug 2024 06:18:16 +0000 Yuke Xie Yuke Xie China Evergrande New Energy Vehicle Group (Evergrande NEV) has been served a bankruptcy and reorganisation notice by its creditors, in another sign of deepening troubles facing the carmaking unit of the insolvent China Evergrande Group. Evergrande New Energy Vehicle (Guangdong) and Evergrande Smart Automotive (Guangdong), two subsidiaries of Evergrande NEV, received the bankruptcy petition filed in the local provincial courts on Friday, which could have a “material” impact on production and... https://www.scmp.com/business/companies/article/3272269/evergrande-nevs-creditors-seek-bankruptcy-proceedings-carmakers-2-units?utm_source=rss_feed https://www.scmp.com/business/companies/article/3272269/evergrande-nevs-creditors-seek-bankruptcy-proceedings-carmakers-2-units?utm_source=rss_feed Mon, 29 Jul 2024 05:48:13 +0000 Enoch Yiu Enoch Yiu Hong Kong’s cash-for-residency scheme has opened up opportunities for local family office operators, with many joining hands to launch a US$100 million fund to manage investments for the applicants. Wings Capital, a local family office which has taken the initiative on the fund, said the initial target is to raise US$100 million from applicants of the Capital Investment Entrant Scheme (CIES). The proceeds will be used to invest in private credit, a loan product with collateral that delivers... https://www.scmp.com/business/banking-finance/article/3270838/family-office-operators-plan-us100-million-fund-invest-capital-investment-migrants?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3270838/family-office-operators-plan-us100-million-fund-invest-capital-investment-migrants?utm_source=rss_feed Thu, 18 Jul 2024 01:30:20 +0000 Enoch Yiu Enoch Yiu China’s Ministry of Finance and Hong Kong’s audit regulators are assisting each other in their separate investigations of PwC’s audit work of the now-liquidated China Evergrande Group. “Under the memorandum of understanding (MOU) signed between the Ministry of Finance and Hong Kong’s Accounting and Financial Reporting Council [AFRC] in 2019, the two regulators are mutually reliant on each other regarding investigations,” said AFRC chairman Kelvin Wong Tin-yau. The Evergrande investigation should... https://www.scmp.com/business/banking-finance/article/3270104/hong-kong-chinese-regulators-cooperate-probes-pwcs-evergrande-bookkeeping?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3270104/hong-kong-chinese-regulators-cooperate-probes-pwcs-evergrande-bookkeeping?utm_source=rss_feed Thu, 11 Jul 2024 10:14:01 +0000 Yuke Xie Yuke Xie Hong Kong’s accounting regulator said there was no evidence to support allegations made by whistle-blowers against PwC, which has been caught in a slew of scandals tied to the now-liquidated China Evergrande Group. The Accounting and Financial Reporting Council (AFRC) said in a statement on Wednesday that after examining the internal investigation carried out by PwC, it has determined that the evidence does not support three of the allegations concerning the auditing firm’s quality controls. The... https://www.scmp.com/business/banking-finance/article/3269979/hong-kongs-audit-regulator-says-whistle-blower-allegations-against-pwc-not-supported?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3269979/hong-kongs-audit-regulator-says-whistle-blower-allegations-against-pwc-not-supported?utm_source=rss_feed Wed, 10 Jul 2024 14:14:35 +0000 China’s Ministry of Finance is conducting more rigorous checks of work done by the Big Four auditing firms for local companies, three people with knowledge of the matter said, amid concerns auditors are not doing enough to uncover corporate wrongdoing. The tighter scrutiny, which has not been previously reported, is mainly focused on Deloitte, EY, PwC, KPMG and their audits of some financial firms as well as highly leveraged companies, said the people. It began a couple of months ago and comes... https://www.scmp.com/business/banking-finance/article/3269957/china-dials-scrutiny-big-four-audit-firms-after-evergrande-probe-sources-say?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3269957/china-dials-scrutiny-big-four-audit-firms-after-evergrande-probe-sources-say?utm_source=rss_feed Wed, 10 Jul 2024 11:13:03 +0000 Bloomberg Bloomberg PricewaterhouseCoopers is cutting staff across its China operations, according to people familiar with the matter, after an exodus of corporate clients diminished the accounting firm’s revenue prospects in the country. At least 100 staffers from different teams at PwC China’s offices in Beijing, Shanghai and other locations are being let go, the people said, asking not to be identified discussing private matters. More than half of one team was laid off, according to one of the people. The final... https://www.scmp.com/business/article/3269917/pwc-starts-mass-lay-china-amid-exodus-clients-wake-evergrandes-fraud?utm_source=rss_feed https://www.scmp.com/business/article/3269917/pwc-starts-mass-lay-china-amid-exodus-clients-wake-evergrandes-fraud?utm_source=rss_feed Wed, 10 Jul 2024 08:39:02 +0000 The Shanghai Stock Exchange has barred S2C, a local chip maker, from listing its shares in the next five years, the first such moratorium since China rolled out its registration-based initial public offering (IPO) system across the board in 2023. S2C, which is focused on integrated circuits electronic design automation (EDA), inflated its profits for 2020 by 12.5 million yuan (US$1.7 million), or 118.5 per cent, the Shanghai Stock Exchange said in an announcement on Tuesday. It comes three... https://www.scmp.com/business/banking-finance/article/3266208/shanghai-bourse-bars-chip-maker-s2c-listing-5-years-falsely-inflating-profit?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3266208/shanghai-bourse-bars-chip-maker-s2c-listing-5-years-falsely-inflating-profit?utm_source=rss_feed Tue, 11 Jun 2024 13:45:09 +0000 The property development arm of state-owned China Merchants Group (CMG) has become the latest Chinese company to sever ties with PwC, amid concerns over the auditor’s role at insolvent developer China Evergrande. China Merchants Shekou Industrial Zone Holdings said late on Wednesday night that it will hire KPMG as its auditor, reversing its decision from less than three months ago to appoint PwC. Shekou had previously appointed Deloitte and in March replaced it with PwC. PwC’s troubles have... https://www.scmp.com/business/banking-finance/article/3265569/pwcs-china-woes-merchants-group-unit-latest-jump-ship-auditor-comes-under-scrutiny?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3265569/pwcs-china-woes-merchants-group-unit-latest-jump-ship-auditor-comes-under-scrutiny?utm_source=rss_feed Thu, 06 Jun 2024 04:19:46 +0000 State-owned China Cinda Asset Management has become the latest major company to terminate its contract with PwC, after at least five big firms recently cut ties with the auditor amid growing concerns about alleged financial fraud tied to embattled developer China Evergrande. China Cinda has replaced PwC’s services with those of fellow “big four” accounting firm Ernst & Young (EY) for 2024, the asset manager said in a stock exchange filing on Monday. The decision was made to “practice sound... https://www.scmp.com/business/article/3265212/pwc-defections-continue-china-cinda-asset-management-ditches-auditor-facing-fines-alleged-evergrande?utm_source=rss_feed https://www.scmp.com/business/article/3265212/pwc-defections-continue-china-cinda-asset-management-ditches-auditor-facing-fines-alleged-evergrande?utm_source=rss_feed Mon, 03 Jun 2024 13:00:18 +0000 Shenzhen-listed conglomerate China Merchants Port Group has joined at least four other large corporations that have terminated contracts with auditing firm PricewaterhouseCoopers (PwC) in the last month amid concerns around possible malpractice tied to insolvent property developer China Evergrande. The Hong Kong headquartered port operator and shipping company said in a Wednesday stock exchange filing that its shareholders have decided to retract a proposal to hire PwC as its auditor for the... https://www.scmp.com/business/article/3264609/pwc-faces-defections-hong-kong-mainland-china-clients-amid-concerns-about-china-evergrande?utm_source=rss_feed https://www.scmp.com/business/article/3264609/pwc-faces-defections-hong-kong-mainland-china-clients-amid-concerns-about-china-evergrande?utm_source=rss_feed Wed, 29 May 2024 13:00:19 +0000 The carmaking unit of troubled property giant China Evergrande has been asked by China’s local governments to return 1.9 billion yuan (US$267.7 million) of subsidies after the company failed to produce cars. China Evergrande New Energy Vehicle Group (Evergrande NEV), which entered into a series of investment cooperation agreements with local authorities in April 2019, said the governments want to terminate the contracts and are demanding repayment, according to a filing to the Hong Kong stock... https://www.scmp.com/business/companies/article/3263754/china-evergrandes-ev-unit-caught-unawares-demand-us268-million-subsidies-local-governments?utm_source=rss_feed https://www.scmp.com/business/companies/article/3263754/china-evergrandes-ev-unit-caught-unawares-demand-us268-million-subsidies-local-governments?utm_source=rss_feed Thu, 23 May 2024 06:10:17 +0000 Hong Kong’s accountancy industry has attracted more young professionals in recent years despite a downturn in new share listings, according to the new head of an industry body. The Hong Kong Institute of Certified Public Accountants (HKICPA), which represents the city’s 47,000 qualified accountants, has seen its membership rise by 10 per cent since 2018. This is despite a drought of initial public offerings (IPOs) in recent years, because young people are attracted by opportunities in... https://www.scmp.com/business/banking-finance/article/3260084/hong-kong-accounting-industry-grows-esg-greater-bay-area-opportunities-draw-young-professionals?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3260084/hong-kong-accounting-industry-grows-esg-greater-bay-area-opportunities-draw-young-professionals?utm_source=rss_feed Tue, 23 Apr 2024 13:01:29 +0000 Hong Kong’s accounting watchdog said it will investigate accounting firm PwC for alleged auditing fraud related to bankrupt Chinese developer China Evergrande Group, adding that it would not hesitate to take enforcement action. The Accounting and Financial Reporting Council (AFRC) said in a statement on Friday that it had taken note of the whistleblower’s allegations about PwC that circulated in the media earlier in the week. An anonymous letter expressed concerns regarding potential alleged... https://www.scmp.com/business/companies/article/3259736/hong-kong-accounting-watchdog-initiates-probe-pwc-audits-bankrupt-developer-evergrande?utm_source=rss_feed https://www.scmp.com/business/companies/article/3259736/hong-kong-accounting-watchdog-initiates-probe-pwc-audits-bankrupt-developer-evergrande?utm_source=rss_feed Sat, 20 Apr 2024 05:58:40 +0000 PricewaterhouseCoopers (PwC) has refuted a letter alleging that its partners were involved in auditing fraud tied to bankrupt Chinese developer China Evergrande Group and said it has taken measures to investigate the origins of the “false information”. The anonymous letter, titled “Who dragged PwC into the fire pit of Evergrande”, began circulating on Chinese social media earlier this week. The claims made in the letter against the auditing company and its partners were “clearly contradictory to... https://www.scmp.com/business/article/3259172/china-evergrande-pwc-refutes-letter-claiming-fraud-tied-indebted-developer-vows-investigate?utm_source=rss_feed https://www.scmp.com/business/article/3259172/china-evergrande-pwc-refutes-letter-claiming-fraud-tied-indebted-developer-vows-investigate?utm_source=rss_feed Tue, 16 Apr 2024 07:34:36 +0000 Tuhu Car, a Chinese car maintenance and repair company listed in Hong Kong, said it expects its financial results for 2023 to reflect a turnaround in its business as a post-pandemic rebound in domestic travel boosted demand for its services. The Shanghai-based company expects to record a net profit of “no less than 450 million yuan (US$62.53 million)” for last year, it said in a filing to the Hong Kong Stock Exchange (HKEX) on Friday. That would represent a turnaround from a loss of 551.9... https://www.scmp.com/business/banking-finance/article/3252982/tencent-backed-tuhu-car-expects-2023-profit-turnaround-post-pandemic-travel-surge-boosted-demand?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3252982/tencent-backed-tuhu-car-expects-2023-profit-turnaround-post-pandemic-travel-surge-boosted-demand?utm_source=rss_feed Fri, 23 Feb 2024 08:17:17 +0000 Hong Kong’s accounting watchdog has handled a substantially higher volume of complaints and investigations into potential audit irregularities over the past five years since it gained more power, its chairman said. Complaints received by the Accounting and Financial Reporting Council (AFRC) almost tripled to 169 in January this year compared with 56 cases in 2019, while the number of investigations jumped almost five times to 207 from 46 in the same period, according to council data. “The... https://www.scmp.com/business/banking-finance/article/3251823/hong-kongs-accounting-watchdog-ready-flex-regulatory-muscle-after-accumulating-all-disciplinary?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3251823/hong-kongs-accounting-watchdog-ready-flex-regulatory-muscle-after-accumulating-all-disciplinary?utm_source=rss_feed Thu, 15 Feb 2024 23:30:11 +0000 The global minimum tax regime to be implemented in Hong Kong beginning 2025 means the city can no longer rely on tax incentives to lure big corporations, but experts say its low salary tax rate will remain a magnet for attracting skilled professionals and maintaining strong capital markets. The government last week issued a consultation paper to collect views on the implementation of a 15 per cent global minimum tax for large multinational companies, commencing in 2025. The solicitation is open... https://www.scmp.com/business/article/3246539/hong-kong-may-lose-right-offer-tax-incentives-large-corporations-its-low-tax-rates-salaries-services?utm_source=rss_feed https://www.scmp.com/business/article/3246539/hong-kong-may-lose-right-offer-tax-incentives-large-corporations-its-low-tax-rates-salaries-services?utm_source=rss_feed Thu, 28 Dec 2023 10:30:08 +0000 Hong Kong’s decision to implement the 15 per cent global minimum tax for large multinational companies from 2025 could undermine the city’s efforts to offer tax incentives to attract new businesses in the future, according to industry players. The government on Thursday issued a consultation paper to collect views until March 20 on the implementation of the tax agreed by almost 140 countries in a landmark deal in 2021. The new level of tax will only apply to big multinational enterprises. Most... https://www.scmp.com/business/banking-finance/article/3245915/global-minimum-15-corporate-tax-may-undermine-hong-kongs-tax-incentives-attract-businesses-lawmaker?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3245915/global-minimum-15-corporate-tax-may-undermine-hong-kongs-tax-incentives-attract-businesses-lawmaker?utm_source=rss_feed Thu, 21 Dec 2023 12:30:17 +0000 PwC’s affiliates in mainland China and Hong Kong, along with a Chinese accounting firm, have agreed to pay a combined fine of nearly US$8 million for auditing failures related to US-listed Chinese companies, according to the US accounting watchdog. The settlements come a year after China and the US reached a landmark agreement that allowed the Public Company Accounting Oversight Board (PCAOB) to inspect auditors’ work of more than 100 Chinese companies. The companies faced the prospect of being... https://www.scmp.com/business/banking-finance/article/3243476/us-watchdog-fines-pwc-affiliates-and-chinese-accounting-firm-some-us8-million-audit-failures?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3243476/us-watchdog-fines-pwc-affiliates-and-chinese-accounting-firm-some-us8-million-audit-failures?utm_source=rss_feed Fri, 01 Dec 2023 05:58:11 +0000 A set of proposed cybersecurity rules from China has cast doubt over whether Hong Kong can serve as neutral ground to settle a dispute between Beijing and Washington over auditing rules, as the measures lay out stricter-than-expected restrictions about where auditors may park and back up sensitive data. The draft rules, jointly published on November 10 by the Ministry of Finance and the Cyberspace Administration of China (CAC), said accounting firms must keep their audit working papers and... https://www.scmp.com/business/banking-finance/article/3241870/chinas-proposed-rules-applying-audit-papers-raise-questions-over-role-hong-kong-big-four-accounting?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3241870/chinas-proposed-rules-applying-audit-papers-raise-questions-over-role-hong-kong-big-four-accounting?utm_source=rss_feed Fri, 17 Nov 2023 04:01:08 +0000 Listed companies in Hong Kong are increasingly taking on external auditors to check their environmental, social and governance (ESG) reporting, as investors and stakeholders look for more reliable and verifiable data, according to an industry survey. “Assurance” for ESG reporting – essentially an audit or evaluation of the claims being made – is not mandatory for listed companies in most jurisdictions, including Hong Kong. But as the requirements and expectations for such disclosures become more... https://www.scmp.com/business/banking-finance/article/3241549/sustainable-business-more-hong-kong-firms-are-getting-their-esg-reporting-checked-external-auditors?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3241549/sustainable-business-more-hong-kong-firms-are-getting-their-esg-reporting-checked-external-auditors?utm_source=rss_feed Wed, 15 Nov 2023 01:30:11 +0000 China’s efforts to promote the development of its digital economy are expected to receive a big boost next year, when an updated set of accounting rules allow companies to include data resources as either “intangible assets” or “inventories” in their financial statements. Under the Interim Provisions on Accounting Treatment of Enterprise Data Resources released by the Ministry of Finance on Monday, corporate data could be classified as intangible assets when these meet relevant requirements in... https://www.scmp.com/tech/policy/article/3232194/chinas-new-accounting-rules-enterprise-data-resources-have-greater-impact-big-tech-firms-telecoms?utm_source=rss_feed https://www.scmp.com/tech/policy/article/3232194/chinas-new-accounting-rules-enterprise-data-resources-have-greater-impact-big-tech-firms-telecoms?utm_source=rss_feed Thu, 24 Aug 2023 11:27:55 +0000 In a case of intertwining scandals, Australia’s most embarrassing moment this year might just save citizens some financial pain while unearthing more evidence against apparent cronyism and greedy corporations. But first, a little bit more about that embarrassing moment. Victoria state’s Labor government – which this week walked away from hosting the 2026 Commonwealth Games and shocked the world – needs to buckle up as the opposition party, the centre-right Coalition and right-wing commentators... https://www.scmp.com/week-asia/opinion/article/3228412/australias-commonwealth-games-saga-highlights-more-ills-embattled-big-four-firms?utm_source=rss_feed https://www.scmp.com/week-asia/opinion/article/3228412/australias-commonwealth-games-saga-highlights-more-ills-embattled-big-four-firms?utm_source=rss_feed Fri, 21 Jul 2023 02:30:11 +0000 A free flow of information is one of the pillars of Hong Kong’s standing as a regional and global financial hub. But the information needs to be accurate, objective and trustworthy if it is to sustain investor and public confidence. Financial reporting is a case in point. It is reassuring to hear from the city’s accounting watchdog that the work of the six big firms, benchmarked by more than 100 corporate audit clients each, is generally good – presumably less than perfect. That assessment from... https://www.scmp.com/comment/opinion/article/3228397/hong-kongs-accountancy-sector-needs-add-talent?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3228397/hong-kongs-accountancy-sector-needs-add-talent?utm_source=rss_feed Thu, 20 Jul 2023 22:30:18 +0000 Hong Kong should consider recruiting overseas auditors to resolve a serious manpower shortage, or it will affect the city’s status as an international financial centre, an industry body has said. The Hong Kong Association of Registered Public Interest Entity Auditors (PIEAA) said on Wednesday that a survey it had conducted between October 2022 and February 2023 of 313 Hong Kong-based accounting firms and students found that one in three accounting firms currently lacks 20 per cent of the needed... https://www.scmp.com/business/article/3228197/shortage-audit-professionals-will-affect-hong-kongs-position-fundraising-centre-industry-body-says?utm_source=rss_feed https://www.scmp.com/business/article/3228197/shortage-audit-professionals-will-affect-hong-kongs-position-fundraising-centre-industry-body-says?utm_source=rss_feed Wed, 19 Jul 2023 07:00:18 +0000 The total annual revenue of China’s entertainment and media industry is set to reach around US$479.9 billion by 2027, as adoption of cutting-edge technology such as artificial intelligence (AI) boosts productivity, according to PwC. Internet advertising and video games will be the main growth drivers of the world’s second-largest entertainment and media market, and both segments could see a transformation from the adoption of such technology, according to PwC’s Global Entertainment and Media... https://www.scmp.com/business/banking-finance/article/3227608/chinas-entertainment-and-media-industry-set-reach-us4799-billion-annual-revenue-ai-boosts?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3227608/chinas-entertainment-and-media-industry-set-reach-us4799-billion-annual-revenue-ai-boosts?utm_source=rss_feed Thu, 13 Jul 2023 23:00:19 +0000 Companies serious about enhancing the credibility of their sustainability disclosures should proactively engage external auditors to attest to the quality of their disclosures, before auditing of such information becomes mandatory, according to experts. External audits can enhance confidence in environment, social, governance (ESG) information that stakeholders consider the most important and which outside investors and lenders rely upon while making capital-allocation decisions that help fight... https://www.scmp.com/business/investor-relations/article/3227445/esg-disclosures-hong-kong-firms-should-start-verifying-climate-sustainability-data-ahead-audit?utm_source=rss_feed https://www.scmp.com/business/investor-relations/article/3227445/esg-disclosures-hong-kong-firms-should-start-verifying-climate-sustainability-data-ahead-audit?utm_source=rss_feed Thu, 13 Jul 2023 00:30:27 +0000