In October 2023, after extensive communication and coordination between the Ministry of Finance and the Hong Kong Institute of Certified Public Accountants, Hong Kong recognized that the Accounting Standards for Business Enterprises revised and issued by the Chinese mainland in the past year, including Interpretation No.16, the Interim Provisions on Accounting Treatment of Enterprise Data Resources, and Interpretation No.17 (exposure draft), are converged with the Hong Kong Financial Reporting Standards, which adopt the International Financial Reporting Standards. Since the mutual recognition of equivalence of accounting standards between the mainland and Hong Kong in 2007, the two sides have kept regular and timely exchanges regarding the progress of their accounting standards setting and international convergence every year, in a bid to maintain the continuous convergence of the two sides’ accounting standards. 

The continuous convergence of the accounting standards of both sides is conducive to reducing the cost of financial statements preparation for companies financing in each other’s capital markets. It creates a good accounting environment for mainland enterprises' "go global" strategies, the smooth operation of the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs, and the interconnectivity of the bond markets in the mainland and Hong Kong, and promotes the common development of the capital markets on both sides.