Core Viewpoint - The Ministry of Finance and the China Securities Regulatory Commission (CSRC) have issued a notification to supplement the list of accounting firms qualified to conduct audits for H-share companies, aiming to enhance the cooperation between the accounting industries of mainland China and Hong Kong, and to support the development of Hong Kong as an international financial center and the high-quality growth of the national economy [1][3]. Group 1: Background and Importance - The mechanism for recommending accounting firms for H-share audits has been in place for over a decade, effectively reducing the costs for mainland companies to list in Hong Kong and facilitating deeper accounting cooperation between the two regions [2]. - The original list of 12 H-share accounting firms has been updated due to the merger or administrative penalties affecting two firms, highlighting the need for a revised list to reflect current standards [2]. Group 2: Regulatory Framework - The notification outlines principles, application requirements, materials needed, procedures, and regulatory expectations for accounting firms wishing to join the H-share audit list [1][4]. - The application process emphasizes quality and selective criteria, requiring firms to meet specific benchmarks such as completed securities service business filings, revenue and registered accountant thresholds, and robust internal governance [4]. Group 3: Collaboration and Development - The long-standing collaboration between the accounting sectors of mainland China and Hong Kong has led to the continuous equivalence of accounting and auditing standards, with initiatives like the Guangdong-Hong Kong-Macao Greater Bay Area talent development program further promoting joint growth [3]. - Recent adjustments in Hong Kong's accounting and auditing regulatory framework necessitate the update of the H-share audit firm list to align with evolving market needs and enhance cross-border regulatory cooperation [3].