China Country Report
Business OpportunitiesSeptember 13, 2021 - ZhongXingHua CPA
This article is a contribution to the International Accounting Bulletin (IAB) China survey by PrimeGlobal member firm ZhongXingHua CPA, and it was published in IAB's August 2021 newsletter. Please read the full article below and reach out to Kevin Tang, International Business Lead Partner, regarding any questions in relation to the article and doing business in China.
ZhongXingHua CPA are part of PrimeGlobal's Asia Pacific region, which has seen unprecedented growth of 247% in the past year. You can find out more about the reasons why PrimeGlobal and its firms are flourishing in this region HERE>
Have there been any significant regulatory developments over the last 12 months?
Yes, there have been significant regulatory developments in China over the last 12 months. To improve the information disclosure quality of listed companies, China Securities Regulatory Commission (CSRC) and the Ministry of Finance of China (MoF) have enhanced inspection of certified public accountants (CPAs) in China, to remind CPA firms to be accountable as ‘watchdogs’. MoF have recently introduced a new Supervision and Inspection Act, to annually inspect accounting firms which provide auditing services to over 100 listed companies.
How would you describe the health of the accounting industry in terms of customer demand, fee pressure, and staff recruitment and retention?
Are there any services areas that have grown over the last 12 months?
We have always heavily relied on assurance services, but we provided more and more consulting services over the last 12 months, which would be the areas of future development and competition in the accounting industry.
Has there been any significant consolidation or merger activity over the last 12 months?
One of the biggest Chinese accounting firms was severely penalized by the regulatory body for its audit failure, which resulted in massive losses of its customers and staff. Over the last 12 months, there has therefore been market restructuring in our industry.
What are your expectations for the next 12 months - are there any potentially significant developments in the pipeline?
Due to the continuing impact of the pandemic, we expect that there will be potentially significant developments in cross-border services for the firms with global layout and service capabilities.
Zhongxinghua CPA LLP is among the top ten Chinese accounting firms, with service lines covering audit, accounting, asset appraisal, tax and advisory. Zhongxinghua's 2700 staff and 130 partners operate in Beijing headquarters and across 32 branch offices nationwide. The firm has a long history of high standard professional services to large state owned enterprises and privately owned business throughout the country.Learn more