Circular on the Issuance of the Interim Provisions on the Audits Conducted by Accounting Firms concerning the Overseas Listing of Chinese Domestic Companies
Circular on the Issuance of the Interim Provisions on the Audits Conducted by Accounting Firms concerning the Overseas Listing of Chinese Domestic Companies
Circular on the Issuance of the Interim Provisions on the Audits Conducted by Accounting Firms concerning the Overseas Listing of Chinese Domestic Companies
Cai Kuai[2005] No. 9
May 26, 2015
The finance bureaus of all provinces, autonomous regions and municipalities directly under the Central Government, and the Finance Commission of Shenzhen Municipality,
To regulate the audits carried out by auditing firms concerning overseas listing of Chinese domestic enterprises, promote the conducting of cooperation between domestic and overseas accounting firms, and protect the interests of investors and maintain the market order, under the Certified Public Accountant Law of the People's Republic of China and other laws and regulations, the Ministry of Finance has formulated the Interim Provisions on the Audits Conducted by Accounting Firms concerning the Overseas Listing of Chinese Domestic Companies (the "Interim Provisions"), which are hereby issued and shall take effect on July 1, 2015.
Interim Provisions on the Audits Conducted by Accounting Firms concerning the Overseas Listing of Chinese Domestic Companies
Article 1 To regulate the auditing services provided by accounting firms concerning the overseas listing of Chinese domestic enterprises, promote the conducting of cooperation between domestic and overseas accounting firms, and protect the interests of investors and maintain the market order, the Interim Provisions are formulated in accordance with the Certified Public Accountant Law of the People's Republic of China and other laws and regulations.
Article 2 Overseas listing audits mentioned in the Interim Provisions mean accounting firms' audits of the financial reports in relation to the issue of shares, bonds, and other securities, directly or indirectly, and the listing (including pre-IPO, the same below) overseas of Chinese domestic enterprises, and audits of annual financial reports post-marketing.
If the audits in relation to the direct or indirect issue of shares, bonds or other securities and listing overseas of Chinese domestic enterprises fall outside the provisional audit, overseas accounting firms shall not carry out the relevant services by way of provisional audit licence.
The Interim Provisions do not apply to an audit of the listing of enterprises which are incorporated in mainland China and in which investors from the Hong Kong Special Administrative Region (Hong Kong), Macao Special Administrative Region (Macao) and Taiwan directly or indirectly hold 50 percent or more of the shares, equity, property shares, voting rights or other similar rights and interests.
Article 3 A Chinese domestic enterprise may select, on a voluntary basis, a Chinese domestic accounting firm or an overseas accounting firm which complies with the legal system and regulatory requirements of the jurisdiction in which it goes public to provide audit services for its overseas listing under the law.
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