HKEx Allows Chinese Firms to Use Local Accounting Norms

Hong Kong's stock exchange now allows locally listed Chinese companies to report their accounts using Chinese accounting standards, reports Reuters.

 

Citing the Hong Kong Exchange, Reuters says the move minimizes regulatory costs imposed on Chinese firms as it means they will be able to produce a single set of results for each reporting period.

 

"This is expected to increase market efficiency and reduce compliance costs of mainland incorporated companies listed in Hong Kong," Mark Dickens, head of listings at the Hong Kong exchange told Reuters.

 

But the move has raised concerns. Several respondents to Hong Kong Exchange's public consultation argue that the use of Chinese accounting rules may "have an impact on investors' confidence and the quality of the capital market in Hong Kong."
 



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