On the one hand, since the mutual recognition of the equivalence of accounting and auditing standards between the Chinese mainland and the Hong Kong Special Administrative Region in 2007, both sides have maintained regular and timely exchanges regarding the progress of accounting standards setting and international convergence, and confirmed continuous convergence between the mainland's Accounting Standards for Business Enterprises and the Hong Kong Financial Reporting Standards every year. On the other hand, some major mainland accounting firms have been permitted to perform audit for mainland enterprises listed in Hong Kong since 2010. These mainland enterprises listed in Hong Kong may choose to prepare financial statements in accordance with the mainland's accounting standards and have them audited by mainland accounting firms, eliminating the need for dual financial reporting and dual auditing. The continuous convergence is conducive to reducing the financial reporting and auditing costs for mainland enterprises seeking to be listed in Hong Kong, providing crucial support for the enterprises' efforts in "going global" and fostering the prosperity of Hong Kong's capital market. Currently, approximately 40 percent of mainland enterprises listed in both the mainland and Hong Kong (A+H share companies) prepare financial statements for both regions directly in accordance with the mainland's accounting standards. 

Going forward, the Ministry of Finance will continue to collaborate closely with the Hong Kong Institute of Certified Public Accountants to ensure the continuous convergence of accounting standards between the two regions, so as to promote mutual development of both the Mainland and HKSAR, achieve win-win results with shared benefits and effectively support the country’s efforts to build a new open economic system at a higher level.