China promotes state -owned enterprises to gradually suspend the four international ac

(Bloomberg, New York) People familiar with the matter revealed that the Chinese government urged state -owned enterprises to gradually suspend the four international accounting firms to make audits.

According to Bloomberg, people familiar with the incident said that the Ministry of Finance and other departments provided window guidance to some state -owned enterprises last month, urging them to end the contract with the four major audit companies.The offshore subsidiaries can still use US auditors, but their parent company was asked to hire mainland China or Hong Kong accountants when signing a contract.The government has not yet set the date of changing the audit company, and the replacement work may be gradually carried out as the contract expires.

The four major accounting firms are PwC, Ernst & Young, KPMV and Deloitte.

Ensure that national data security supports China ’s local accounting industry

People familiar with the matter said that China is seeking to control the influence of global audit companies related to the United States to ensure the security of national data and support China's local accounting industry.Beijing has been making similar suggestions to state -owned enterprises for many years, and recently emphasized that enterprises should use audit services outside the four major.

Analysis believes that the signing of the audit supervision cooperation agreement between China and the United States in August last year marked that the two countries can still cooperate on certain issues.However, China urges state -owned enterprises to abandon the use of four major services. It is still ongoing in sensitive areas such as state -owned enterprises and advanced technology.China is also facing a risk, and the useful auditors with low visibility will make it more difficult for state -owned enterprises to attract international investment.

160 Chinese listed Chinese companies may be delisted since 2024

There are currently more than 200 Chinese companies listed in the United States. If these companies' audit materials have not been inspected for three consecutive years, they have not been inspected by the US Public Company Accounting Supervision Committee (PCAOB). They may be delisted from 2024, including Alibaba, Baidu,160 Chinese companies including JD.com settled into the list of delisted.