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| 'Big four' gear up for post-Cepa rush ( 01/05/2004 ) | |||||||||||||
Multinational accountancy firms are leveraging Hong Kong as a platform to fill increasing demand for professional services in the Chinese mainland. Most of the major firms have set up their regional headquarters in Hong Kong, drawn by rising business opportunities and the use of international standard accounting practices. As the mainland further opens up under the Cepa free trade pact, Roger Best, president of the Hong Kong Society of Accountants, sees future demand as "insatiable". "China needs the skills of professional accountants in Hong Kong, who are in the best possible position to provide the mainland with financial services of international standard," Mr Best said. "We see this firstly in the area of capital, where there is insatiable demand from companies wishing to list overseas, and also from individual businesses wishing to grow. China needs service providers who understand fully the laws and regulations of different jurisdictions." Another strong level of demand for services comes from overseas companies looking to invest in China. Talent pool a key strength
"Over the past few years we have seen many of our multinational clients moving operations into the mainland, and we have been building up our mainland capabilities too," Mr Woo said. By the end of this year we expect to have a China network of nine offices with close to 1,000 people in both Shanghai and Beijing. "We have a strong pool of skilled professionals in Hong Kong who understand how MNCs work and have experience of international standard accounting and auditing. This talent pool has been instrumental in helping us rapidly develop our mainland operations to their current strength." Mr Woo said Ernst & Young views Cepa as part of basket of measures (including market reforms and WTO entry) that will stimulate trade and investment in the mainland and Hong Kong. "It will be no surprise to see many different businesses expand in Hong Kong and China after the trade pact is implemented. These companies will all need international standard accounting firms to support them," he said. Free trade pact brings 'real benefits'
In the space of 10 years, when it entered the mainland with a representative office and a handful of staff, KPMG now employs 1,400 in China and is soon to open its fifth branch office. And this growth was achieved without a merger, Mr Kung points out. "The opportunities for accountants to practise in China are huge, and there is immense demand for partners, which means great opportunities for Hong Kong accountants," he said. Having a Hong Kong base before going into the mainland was a definite advantage, Mr Kung added. "China needs good, experienced accountants to help MNCs have confidence in investing in the mainland. Hong Kong accountants have the edge because of their dual language skills, and because they understand the Chinese culture." Knowledge exportable Deloitte Touche Tohmatsu, one of the first international accounting firms to set up office in the mainland, has recently shifted focus to take into account China's rapid growth. CEO Peter Bowie said that apart from its expertise in global standards, Cepa is another important factor that has helped Hong Kong's accountancy profession. "There are many opportunities to transfer knowledge and experience built up over so many years in Hong Kong and China," Mr Bowie said. "Demand for services will go up accordingly as clients expand their businesses into China as a result of Cepa." A focus of PricewaterhouseCoopers is to help multinational companies into China by managing their tax and compliance requirements according to Chinese regulations. The firm has specialist China tax divisions based both in Hong Kong and the mainland, and says knowledge of the laws in different jurisdictions is critical. "We see China as a tremendous opportunity", partner Nick Allen said. Related links | |||||||||||||
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