The stand-off between financial regulars in the US and China, and the Big Four accounting firms might be over soon, expects accounting professor Paul Gillis, looking a a recent piece in the Wall Street Journal. Inculding a US$500,000 settlement fee for each of the four, he writes on his weblog.
The proposed law for foreign investments is up for discussion, and offshore VIE companies controlled by Chinese would be treated as domestic companies, legalizing current practices. Accounting professor Paul Gillis lists the winners and losers of the proposed law on his weblog.
The Chinese Securities Regulatory Commission (CSRC) will in 2015 drastically change the way how IPO´s take place in China. The government will step back, leaving decision making to the market. To facilitate that change, China needs an audit regulator, writes accounting professor Paul Gillis at his weblog.
The Cayman Islands and other offshore havens have been used by domestic and foreign companies to circumvent murky Chinese regulations, the VIE´s, in jargon. Accounting professor Paul Gillis has fighting against this practice, and see some light at the end of the tunnel.
China´s economic growth might no longer be double digits, the internet industry keeps on booming, says financial expert Paul Gillis at Aljazeera. Successful IPO´s contributes, although the companies did not really need money, says the accounting professor.
Fishy listings from Chinese firms have become a problem for the Hong Kong stock exchange. Hong Kong needs to strengthen its rules to get their act together, says accounting professor Paul Gillis at WHEC.com. Its new 2012 rules might not be enough. Chinese companies have to be forced to tell the whole story.
China is officially loosening its rigid regulations, also for auditing companies, who might now be wholly foreign owned firms (WFOE´s) too. But accounting professor Paul Gillis believes the effects of this reform might be rather limited, to smaller CPA firms, he writes on his weblog.
Accounting professor Paul Gillis has a look at research group Analysts Anonymous (AA), who attacked in September the Hong Kong listed Tianhe Chemicals Group Ltd. for allegedly fraudulent cash flow statements. On his weblog Gillis explains why AA might be wrong.
One of the major concerns for US investors looking at Chinese companies were the so-called VIE-structures, moving the company to non-Chinese jurisdictions. The major success of Alibaba´s IPO has wiped away those concerns, says accounting professor Paul Gillis, and we might see a more subtle change, he writes on his weblog.
The ongoing stand-off between securities regulators in China and the US keeps auditing firms hostage and might eventually lead to the delisting of Chinese companies at US stock exchanges. Beida accounting professor Paul Gillis tries to map out a way out of the maze in Forensic Asia.(pdf)