China Securities Regulatory Commission and Ministry of Finance start selection to add two mainland accounting firms to the H-share audit list

China Securities Regulatory Commission and the Ministry of Finance jointly issued a notice launching a supplementary process to expand the roster of mainland accounting firms permitted to audit H-share companies, aiming to add two firms to the current list of 10 through a voluntary, quality-based selection process. A joint review and recommendation committee will assess applicants against eligibility criteria including completion of securities service filing and relevant practice experience, 2024 revenue thresholds (total revenue of at least CNY 1.5bn, including at least CNY 1.0bn from audit work, and either at least CNY 250m from securities services or at least 100 listed-company audit clients), at least 800 China-licensed certified public accountants, robust governance and quality/internal control systems, and a Hong Kong presence via a member firm or shared membership in an international accounting network. Preference factors include stronger audit digitalisation, higher capacity to bear professional liability risk, more integrated firm management, and Hong Kong member-firm experience in auditing H-share or other Hong Kong listed companies. Applications are due by 10 December, after which the committee will conduct an initial review, public disclosure, on-site inspection and overall evaluation before determining the expanded list. Newly recommended firms may begin taking on H-share audit engagements from the date the list is announced, and will be subject to ongoing reporting and annual assessments tied to securities service filing and practice-quality inspections, with recommendations withdrawn if firms no longer meet the baseline requirements.