Company constructions via fiscal paradises, VIE’s or variable interest entities, are regular ways to avoid corporate government restrictions in China, and under official attack just for that. The Supreme Court fielded a verdict on transactions by one of those VIE’s, but – says accounting professor Paul Gillis on his weblog, it did not clarify whether VIE’s might lose their validity.
The government has been pulling in bad loans, rather than letting companies face bankruptcy and letting the markets do the job. For China’s leaders stability is key, says Beida accounting professor Paul Gillis to Reuters.
Bike hailing services got another round of funding this week in hundreds of million US dollars, but Beijing-based observers like Beida accounting professor Paul Gillis just do not see how those companies, involved in a giant competitive war, will ever pay back those loans, he tells QZ.
Financial authorities in Beijing are playing with the idea to give tech firms a faster-track IPO in China, says accounting professor Paul Gillis at his weblog. Taking away some of the cumbersome restrictions for IPO’s in China might lead to the expected ban of variable interest entity or VIE’s, a side-track allowing Chinese firms to list in the US, he suggests.
Oversight of Chinese companies listed in the US has been ongoing troublesome, as auditors miss access to much information considered a state-secret in China. Peking University accounting professor Paul Gillis told the U.S.-China Security and Economic Commission 26 January how to solve the conundrum
China sees a massive capital flight, putting its currency, the yuan, under pressure. For that reasons, says accounting professor Paul Gillis to the VOA, are capital flight and China´s garage sale of US treasuries closely linked.
Accounting professor Paul Gillis dives further into the demise of the Big Four accounting firms in China, at his weblog. After a successful entry into the China market, both the financial crisis and domestic competition wiped away whatever advantage they had.
Now a massive row of Chinese companies, including Alibaba, are preparing for IPO´s, both at home at abroad, insights in China´s financial industry are more important than ever,
The government wants to allow market forces to decide what financial direction the country is taking, and because more than even capital is owned by Chinese citizens, just looking at what the central government in Beijing is doing, is not longer good enough.
Accounting professor Paul Gillis published on his weblog the annual top-10 accounting firms in China for 2015, based on audit revenue. PwC is still leading the pack, but might lose its no.1 position soon, and drop, like the other three foreign audit firms, losing ground to domestic competition, he predicts.
Foreign companies fear an increasing risk in China, now the government is tightening legal supervision, fighting corruption and banning business practices that were considered to be common up to a year ago. GSK might be one of the high-profile cases in the anti-corruption drive, but no foreign company or industry is not worried about those changes. The China Speakers Bureau can offer a range of experts on risk management in China.