The Ministry of Finance and the China Securities Regulatory Commission have approved two mainland accounting firms to conduct audits of H-share enterprises.

The Ministry of Finance and mainland accounting firms recommended by the China Securities Regulatory Commission for auditing H-share companies have been approved for issuing audit reports for eligible H-share companies in the Hong Kong capital market in the name of their respective firms from May 15, 2026, confirmed by the Hong Kong regulatory authorities. This move to add two mainland accounting firms engaged in auditing H-share companies will have positive and far-reaching significance in reducing the cost of mainland companies in listing in Hong Kong, promoting connectivity between the two capital markets, and integrating Hong Kong into the overall national development plan. It will also help further deepen accounting exchange and cooperation between mainland and Hong Kong. The Ministry of Finance and the China Securities Regulatory Commission will strictly manage the accounting firms approved to engage in auditing H-share companies in accordance with relevant mainland and Hong Kong regulatory requirements to ensure ongoing compliance and promote high-quality completion of auditing services for H-share companies. Officials from the Ministry of Finance and the China Securities Regulatory Commission answered questions from reporters regarding the two mainland accounting firms approved to engage in auditing H-share companies. On May 8, 2026, the Ministry of Finance, the China Securities Regulatory Commission, and the Hong Kong Institute of Certified Public Accountants published the list of two mainland accounting firms approved to engage in auditing H-share companies. Recently, officials from the Ministry of Finance and the China Securities Regulatory Commission addressed questions related to the addition of these firms. 1. Could you please introduce the background and significance of the addition of mainland accounting firms to engage in auditing H-share companies? Promoting mainland accounting firms to engage in auditing H-share companies is an important step in deepening accounting exchange and cooperation between mainland and Hong Kong. In December 2010, the Ministry of Finance and the China Securities Regulatory Commission recommended 12 mainland accounting firms (referred to as H-share accounting firms) to the Hong Kong regulatory authorities to engage in auditing H-share companies. Over the past decade, this mechanism has effectively reduced the costs for mainland companies to list in Hong Kong and has played a positive role in deepening cooperation in accounting exchange and promoting connectivity between the two capital markets. During the implementation process, two accounting firms did not meet the basic requirements for recommendation and were removed from the list. To facilitate the addition to the list, on November 19, 2025, the Ministry of Finance... (translation may be truncated due to exceeding 5000 characters)