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Vlad Yaitskiy
Bloomberg reported this, citing people acquainted with the situation. They note that, due to concerns for national security, China does not want to grant Western businesses access to private information of domestic firms.
Bloomberg in particular claims that China's Ministry of Finance has advised some state-owned companies to stop doing business with the Big Four and move to local firms when their current contracts expire. However, the Big Four's services will still be available to their overseas subsidiaries.
Bloomberg estimates that in 2021, the income of these auditing companies from Chinese customers will be close to $3 billion. Chinese state firms may find it more difficult to access foreign investments if they switch to less well-known local auditors, according to Richard Harris, chief executive of Hong Kong-based investment advisory company Port Shelter Investment Management.
The Big Four and Chinese authorities have not provided any comments.
source: bloomberg.com
Bloomberg in particular claims that China's Ministry of Finance has advised some state-owned companies to stop doing business with the Big Four and move to local firms when their current contracts expire. However, the Big Four's services will still be available to their overseas subsidiaries.
Bloomberg estimates that in 2021, the income of these auditing companies from Chinese customers will be close to $3 billion. Chinese state firms may find it more difficult to access foreign investments if they switch to less well-known local auditors, according to Richard Harris, chief executive of Hong Kong-based investment advisory company Port Shelter Investment Management.
The Big Four and Chinese authorities have not provided any comments.
source: bloomberg.com
