I can’t see China from my balcony, but this caught my attention. China orders Big Four auditors to restructure. Only 20% of partners can be foreign by 2017, Senior Partners must be Chinese citizens. This can’t be reassuring for investors in listed Chinese firms. The article I read spins the news as “positive”. It could have been worse, they say.
The foreign joint venture arrangements currently used by the Big Four were signed 20 years ago and allowed foreign-qualified accountants to dominate their China practices. All of firms’ licences, aside from PWC, expire this year.