Contemporary Business 14th Edition by Louis Boone, David Kurtz

تمرين 15

Accounting: Hong Kong Meets China Hong Kong was a British colony for almost 200 years until 1997, when Britain ceded it to the People's Republic of China. China's rise to global power has brought difficulties to the intersection between its financial environment and Hong Kong's. Even after the turnover, Hong Kong and mainland China had two separate accounting systems with different standards and qualifying examinations. Hong Kong accounting is based on international standards and conducted in English; Chinese accounting is not.At the beginning of 2010, Hong Kong accepted Chinese accounting standards. This step reflects China's growing attractiveness to international investors. It also advances China's ambition to be part of the international financial system, but until recently the Chinese accounting system has been notorious for its "book-cooking" scandals. And as Hong Kong's transition to Chinese standards progresses, Hong Kong accountants risk losing substantial business to Chinese firms. Tim Lui, a tax partner at the Hong Kong branch of the worldwide accounting firm PricewaterhouseCoopers, believes that in the short run, at least, Hong Kong accountants have a competitive edge due to their training and international perspective. Foreign investors will be glad to see that Chinese companies will be audited by large, international accounting firms. But he warns against complacency: "The mainland's development is robust and fast and the market is immense." Another concern is that small and medium-sized Hong Kong accounting firms simply aren't big enough to succeed in China, especially in Shanghai, China's business and accounting center. Robert Sawhney of SRC Associations Ltd., a Hong Kong accounting firm, urges these smaller firms to market themselves more aggressively and bring their training strategies up to date. He says that "there is substantial scope for Asian accounting firms to provide services to other organizations and in niche areas."
-What can Hong Kong accounting firms do to increase their business in mainland China?