The Chinese government has issued guidance to its state-owned firms to stop using major global accounting firms such as Ernst & Young, PricewaterhouseCoopers, KPMG and Deloitte & Touche. According to a report by Bloomberg on Wednesday, the Ministry of Finance is one of the departments that has issued this guidance, which advises firms to let contracts with these firms expire.
The guidance comes after Beijing agreed to a deal with the U.S. last year, allowing U.S auditors to inspect hundreds of New-York-listed Chinese firms. Although offshore firms are still allowed to use U.S. auditors, the parent companies of these firms are being instructed to use Chinese or Hong Kong accountancy firms, according to one source familiar with the matter.
The Chinese government has been concerned about data security for some time, and this has been the primary motivation for the guidance. In particular, the Chinese government is concerned about the potential for corporate espionage, as well as the potential for data to be used to manipulate the stock market.
The guidance is also seen as a way for the Chinese government to promote the use of domestic accounting firms, as well as to protect the interests of Chinese citizens and businesses. By using domestic firms, the Chinese government can ensure that the data is kept secure and that the interests of Chinese citizens and businesses are protected.
The guidance is also seen as a way to promote economic growth in China. By using domestic firms, the Chinese government can ensure that the data is kept secure and that the interests of Chinese citizens and businesses are protected. This will help to create a more stable and secure environment for businesses to operate in, which will lead to increased investment and economic growth.
The guidance is also seen as a way to protect the interests of Chinese citizens and businesses. By using domestic firms, the Chinese government can ensure that the data is kept secure and that the interests of Chinese citizens and businesses are protected. This will help to create a more stable and secure environment for businesses to operate in, which will lead to increased investment and economic growth.
Overall, the Chinese government’s guidance to its state-owned firms to stop using major global accounting firms is seen as a way to protect the interests of Chinese citizens and businesses, promote economic growth in China, and ensure that data is kept secure. This will help to create a more stable and secure environment for businesses to operate in, which will lead to increased investment and economic growth. It will also help to ensure that the interests of Chinese citizens and businesses are protected.
