Home' A Plus Magazine : Dec 2012 Contents 12 December 2012
CCB chairman defends
Mainland bank standards
Wang Hongzhang, chairman of China Construc-
tion Bank, defended the nation’s accounting
standards amid concerns that banks were
under-reporting bad loans. Wang told the Fi-
nancial Times that when regulators demanded
accuracy and transparency from the country’s
financial institutions, it strictly complied with
rules. CCB, China’s second biggest bank by as-
sets, has under-performed the stock market by
a wide margin this year.
New yuan lending slumps
to yearlong low point
New yuan-denominated lending dropped to
its lowest monthly point in a year in October,
down by 14 percent year-on-year. Lenders ex-
tended 505.2 billion yuan worth of new loans,
which fell below the 590 billion yuan the mar-
ket had expected, according to data released by
the People’s Bank of China on 12 November.
National statistics office
revamps GDP calculations
China will revise its gross domestic product
accounting methods in line with international
standards, the National Bureau of Statistics
said. China’s current methods are derived from
the 1993 version of the United Nations System of
National Accounts, which was revised in 2008.
The bureau told Xinhua it would change its sys-
tem to reflect the revisions.
E&Y names winners of
Ernst & Young has announced the two winners
of the E&Y Entrepreneur of the Year 2012 China
awards. Ma Weihua, executive director, presi-
dent and CEO of China Merchants Bank, won
the award for the Mainland region and Michael
Wu, chairman and managing director of Hong
Kong Maxim’s Group, was presented with the
award for the Hong Kong and Macau region.
A news item in the November issue of A Plus
incorrectly described a new charge relating to
certain Hong Kong real estate transactions. It is
a buyer stamp duty, not a property tax.
The BDO group has announced that a significant part of PKF China will join
BDO Li Xin before the end of this year.
About 350 PKF partners and staff will join the local BDO firm in China. The
move reinforces BDO Li Xin’s position as the largest Chinese owner-managed
CPA firm and makes the merged firm the market leader in ser ving state-ow ned
enterprises in China.
Martin van Roekel, the worldwide chief executive officer of BDO, said he
believes that the addition of PKF contributes to the firm’s future growth in the
Mainland. “I visited the impressive new BDO Li Xin office in Beijing,” he said.
“ The new partners all expressed their positive agreement with the merger.”
In welcoming the merger, Jiandi Zhu, managing partner of BDO in China,
said he expected the “combined expertise of our partners and staff with state-
owned enterprises as well as with listed companies – including H-share busi-
nesses – will build upon our approach as well as our position in these market
The move follows the long-expected merger agreement between BDO and
PKF in the United Kingdom as well as a merger of the two firms on the Austra-
lian east coast.
BDO Li Xin to absorb 350 PKF staff
U.S. regulator completes
first round of observations
PCAOB hails development as breakthrough
The Public Company Accounting Oversight Board in the United States has com-
pleted a round of obser vations of inspections of Chinese audits.
The PCAOB also expects talks between Chinese and U.S. officials on access
to audit documents to take place by the end of the year.
James Doty, chairman of the PCAOB, said that the talks could lead to a
significant breakthrough. “ The fact that it is a serious discussion with decision-
makers who are aware of the complexities of the issues on both sides is new,”
Reuters quoted Dot y as saying.
According to Doty, the first of the PCAOB observations took place in late
October, but there is still no deal allowing accounting regulators from the U.S.
to do joint inspections with the Chinese.
Officials from China’s Ministry of Finance and the China Securities Regula-
tory Commission are expected to travel to Washington before the end of the
year to discuss the release of audit documents to the U.S. “ These are very seri-
ous, significant steps for them to take, given where we started,” Doty said.
The U.S. Securities and Exchange Commission will also be involved in the
talks. In October, the PCAOB reached an agreement with Chinese authorities
allowing it to inspect the audits of U.S.-listed companies from China to address
numerous corporate scandals. Before an agreement was reached, the PCAOB
and the SEC had been negotiating for months with Chinese counterparts.
China had previously resisted, citing sovereignty concerns.
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