BEIJING, May 8 (Xinhua) -- Two additional Chinese mainland-based accounting firms have been granted approval to audit H-share companies listed in the Hong Kong Special Administrative Region (HKSAR), which will further promote connectivity between the two capital markets, according to an official announcement Friday.
The two firms, RSM China and Baker Tilly China, received the green light from the joint review and recommendation committee of the Ministry of Finance (MOF) and the China Securities Regulatory Commission (CSRC), with confirmation from the HKSAR's regulatory authorities.
The approval will take effect on May 15, allowing the two firms to issue audit reports in their own names for qualified H-share issuers in Hong Kong's capital market.
H-shares refer to the shares of companies incorporated in the Chinese mainland and listed in Hong Kong. Promoting mainland accounting firms to conduct H-share company audits is an important step in deepening accounting exchanges and cooperation between the mainland and Hong Kong, the MOF and the CSRC said.
In 2010, a total of 12 mainland firms were initially recommended for this purpose. Since then, two of them have withdrawn from the list for failing to meet the basic requirements. With the addition of the two new firms, the total number of approved H-share auditors has returned to 12.
The MOF and CSRC said they will strictly supervise the approved firms in line with the regulatory requirements of both the mainland and the HKSAR, ensuring that they continue to meet the necessary standards and deliver high-quality audits for H-share companies.
The expansion of the H-share audit list will further deepen accounting exchanges and cooperation, reduce listing costs for mainland enterprises seeking to go public in the HKSAR, and promote connectivity between the two capital markets, according to authorities.
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