Blog Archives

Expected: Deal between China and US regulators on Big Four – Paul Gillis

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.

Winners and losers at the new foreign investment law – Paul Gillis

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.

Now China needs an audit regulator – Paul Gillis

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.

China might end VIE-structures, at last – Paul Gillis

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.

2014: A stellar year for the internet industry – Paul Gillis

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.

Hong Kong needs to strengthen its accounting rules – Paul Gillis

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.

Limited reforms on auditing firms – Paul Gillis

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.

Why Tianhe got beaten for the wrong reasons – Paul Gillis

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.

How Alibaba changed the VIE-discussion – Paul Gillis

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.

How to end the auditing wars – Paul Gillis

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)