I came across an article in the Financial Times on Dec 10th 2010, which talked about change in accounting standards.
‘Hong Kong Exchanges & Clearing announced on Friday that it would allow Chinese companies listed in the city to rely solely on mainland auditing companies and accounting standards to prepare their financial statements – a move corporate governance activists said would reduce local regulatory oversight.’
HKEx said the move “would increase market efficiency and reduce compliance costs of mainland incorporated companies listed in Hong Kong”. The exchange said that the majority of respondents to the public consultation that had taken place between August and October 2009 felt that mainland accounting standards had “substantially converged with Hong Kong accounting standards”.
HKEx said it believed “the co-operation agreements between Hong Kong and mainland regulators will enable effective monitoring and investigation of audit firms”, but did not outline what role the Hong Kong regulators would play.