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Grant Thornton International's Hong Kong practice will cease operations by year-end, reports the South China Morning Post. The mid-sized accounting firm's partners and staff will be absorbed by another accounting company, BDO.

"The opportunity to have a massive admission of so much established accounting talent is rare. This will strengthen BDO's competitiveness in the local accounting industry," Albert Au Siu-cheung, chairman and chief executive of BDO, told the Post. The Post notes that the mass hiring will extend BDO's lead over smaller accounting firms with 300 people or fewer.

Au says that the exodus of talent from Grant Thornton did not have anything to do with the pending lawsuits involving former Grant Thornton managing partner Gabriel Ricardo Dias-Azedo, who disappeared last year amid reports of missing funds owned by the firm's clients. Dias-Azedo has not been found. Lawsuits filed against him and Grant Thornton are proceeding in the courts.

Grant Thornton chief executive Patrick Rozario said the team decided to shift because of Grant Thornton International's directive for the mainland China member firm to lead Grant Thornton's Hong Kong office. "We consider BDO, which is run independently in Hong Kong and China, respectively, is a model that suits us better," Rozario told the Post.

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