Core Viewpoint - The article discusses the recent trend of accounting firms in China, specifically the voluntary cancellation of their securities service business registrations, highlighting the increasing regulatory scrutiny in the auditing industry [2][5]. Group 1: Company Actions - Beijing Yatai International Accounting Firm and Zhongtianyun Accounting Firm have voluntarily applied to cancel their registrations for securities service business [2]. - This year, a total of five accounting firms have canceled their securities service business registrations, indicating a significant trend in the industry [3]. Group 2: Regulatory Environment - The Ministry of Finance and the China Securities Regulatory Commission revised the "Management Measures for the Registration of Accounting Firms Engaging in Securities Services," aiming to establish a dynamic and orderly registration management system [6]. - The revised measures include a new chapter on "registration verification, announcement, and cancellation," specifying conditions under which firms may have their registrations canceled [6]. Group 3: Industry Implications - The cancellation of registrations does not permanently exclude firms from the securities service sector, as they can reapply for registration in the future [7]. - Regulatory bodies have intensified their scrutiny and enforcement actions against accounting firms, with significant penalties imposed on multiple firms for violations [7].

Group 1 - The core viewpoint of the report indicates that the A-share market showed signs of recovery in the second quarter of 2025 after a slowdown in the first quarter, with expectations that the overall new stock issuance in 2025 will align with 2024 levels [1][2] - The report highlights that the implementation of the "1+6" policy measures by the China Securities Regulatory Commission and the introduction of a third set of standards on the ChiNext board will support the listing of high-quality, unprofitable innovative companies, leading to increased activity in the A-share market, particularly for high-tech enterprises [1][2] - It is projected that by June 30, 2025, there will be 50 new stocks listed in the A-share market, raising 37.1 billion RMB, which represents a 14% increase in both the number of new stocks and total financing compared to the first half of 2024 [1] Group 2 - The report anticipates that the H-share market will see 40 new stocks raising 10.21 billion HKD in the first half of 2025, marking a 33% increase in the number of new listings and a 673% increase in total financing compared to the same period last year [2] - Factors driving the Hong Kong new stock market include encouragement for leading mainland enterprises to list in Hong Kong, simplification of the listing application process for A-share companies, and improved market liquidity and valuation [2] - The report estimates that the Hong Kong new stock market could see 80 new stocks raising 20 billion HKD in 2025, with significant contributions expected from the technology, media, telecommunications, and consumer sectors [2]

Core Viewpoint - The article discusses the significant increase in the number of listed companies in Shenzhen changing their auditing firms, primarily due to regulatory penalties affecting several major accounting firms [2][10]. Group 1: Audit Firm Changes - In 2024, 103 listed companies in Shenzhen changed their auditing firms, surpassing the total of 98 changes in 2022 and 2023 combined [3][10]. - The proportion of companies changing auditors has increased significantly, with 35, 63, and 103 companies changing firms in 2022, 2023, and 2024 respectively [10]. Group 2: Impact on Major Accounting Firms - Major firms such as Daxin, PwC, and Tianzhi International experienced a drastic reduction in the number of projects they undertook, with Daxin's projects dropping from 49 to 6 (a decrease of 87.76%), PwC's from 12 to 3 (a decrease of 75%), and Tianzhi's from 22 to 10 (a decrease of 54.55%) [4][10]. - The article highlights that the loss of clients for these firms is attributed to regulatory penalties and the resulting loss of qualifications [9]. Group 3: Audit Reports and Fees - As of April 30, 2025, all 423 listed companies in Shenzhen submitted their 2024 annual reports and audit reports on time, with 407 receiving standard unqualified audit opinions [5]. - The total audit fees for the 414 companies that disclosed their fees amounted to 862 million yuan, with an average fee of 2.0376 million yuan, reflecting a slight increase from the previous year's average of 2.0116 million yuan [6][7]. - Among the listed companies, 189 experienced an increase in audit fees, with the highest increase reaching 172.73%, while 94 companies saw a decrease, with the largest drop being 57.14% [7]. Group 4: Long-term Auditor Relationships - There are 57 listed companies in Shenzhen that have retained the same auditing firm for over 10 years, accounting for 13.48% of the total [11]. - One company has maintained the same auditor for 24 years and has announced plans to change its auditing firm [11].

多宗撤单IPO项目中，发行人、中介机构集体吃罚单。 今年以来，IPO监管延续从严态势，"一案多罚"的情况屡屡出现。就在近期，因一单"带病闯关"的IPO项 目，保荐券商、会计师事务所以及多名相关责任人齐齐受罚。 深交所官网显示，该所对辉芒微电子（深圳）股份有限公司（下称"辉芒微"）创业板IPO的多家中介开 出罚单——中信证券、大华会计师事务所（下称"大华所"）遭书面警示，2名保代、2名签字会计师被通 报批评，违规事项包括未充分核查发行人经销收入的内控有效性等。 随着罚单落地，辉芒微IPO"带病闯关"的细节被同步揭开。近四年间，该公司两度"冲A"，先后瞄准科 创板、创业板，其间还曾"一查就撤"，在被抽中现场检查的当月便匆匆撤回申报材料。 据第一财经梳理，此前年内还有多单IPO项目出现"一案多罚"，涉及科凯电子创业板IPO、安芯电子科 创板IPO等。上述IPO项目多为撤单项目，然而，监管持续紧盯IPO"一撤了之"的情况，对问题项目，一 经查实，中介机构难逃追责。 两度闯关IPO均撤材料 在辉芒微创业板IPO撤单一年多之后，该项目被查明存在多宗违规，系列罚单摆在了中介机构面前。 两年多之前，该公司瞄准创业板上市。据深 ...

Core Viewpoint - The recent cancellation of the registration of three accounting firms indicates the effective implementation of the newly revised "Administrative Measures for the Registration of Accounting Firms Engaging in Securities Services," showcasing the emergence of a survival of the fittest mechanism in the industry [1][3]. Group 1: Regulatory Changes - The new regulations allow for the cancellation of registration for accounting firms that voluntarily apply for it, fail to report significant events, or have false or misleading information in their registration materials [1]. - The cancellation of registration is not a permanent status, establishing a dynamic mechanism for quality control in the securities auditing market [1]. Group 2: Recommendations for Improvement - Establish a rating system for accounting firms engaged in securities services, with annual evaluations based on current performance and historical audit cases, categorizing firms into grades A, B, C, and D [2]. - Mandatory disclosure of the latest ratings for accounting firms hired by listed companies, with specific warnings for those hiring D-rated firms, and requirements to disclose audit fees [2]. - Increase the circumstances under which firms can be deregistered, including automatic deregistration for the lowest-rated firms and those with significant violations [2]. - Create a seamless transition system for audit services when a firm is deregistered, ensuring continuity in audit operations [2]. Group 3: Liability and Accountability - The structure of special partnerships in accounting firms may allow partners to evade responsibility for misconduct; thus, there is a need to clarify conditions under which partners can be held jointly liable [3]. - The cancellation of registration for accounting firms should not absolve them of civil liability, and a simplified compensation process for investors should be explored [2][3].

Core Viewpoint - New City Joy Service has faced significant issues regarding its financial reporting and auditing, leading to the resignation of its auditor, PwC Hong Kong, due to disagreements over additional audit fees and undisclosed transactions with related parties [1][4][6]. Group 1: Company Background - New City Joy Service is primarily engaged in property management and value-added services, with its actual controller being Wang Zhenhua, the former chairman of New City Holdings [2]. - PwC has served as the auditor for New City Joy Service since its listing in 2018, covering all six reporting periods from 2018 to 2023 [2]. Group 2: Financial Performance - The company announced a projected net loss for 2024 between approximately RMB 700 million and RMB 900 million, attributed to increased credit impairment losses and goodwill impairment due to intensified industry competition [2][3]. - As of December 31, 2024, the company had previously provided financial assistance to related parties, with a maximum outstanding balance of RMB 800 million, all of which has since been repaid [3]. Group 3: Audit Issues - During the audit of the 2024 financial results, PwC discovered several transactions with related parties that were not recorded in the company's financial statements, leading to discrepancies in bank reconciliation statements [2][4]. - Following the discovery, an independent investigation committee was formed by the company's board to address the issues raised by PwC [4]. Group 4: Auditor Resignation - PwC submitted a proposal for additional audit fees due to the extra time required for the investigation but was rejected by New City Joy Service, which led to the recommendation for PwC's resignation [4][6]. - The resignation of PwC is notable as it is uncommon for auditors to be suggested for resignation by the companies they audit, particularly over fee disagreements [1][6]. Group 5: Market Context - The resignation of auditors in the Hong Kong market is relatively rare, with most cases arising from either the inability to complete audits on time or disagreements over audit fees [6][7]. - PwC has seen a decline in its audit engagements, with a significant drop in the number of annual report audits in both A-share and Hong Kong markets compared to the previous year [8].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has imposed penalties on Zhongshen Hua Accounting Firm for failing to conduct due diligence during the audit of Ningxia Yuangao Industrial Group's financial statements for 2018 and 2019, resulting in false records of cash, revenue, and profits [1][5]. Summary by Sections Audit Violations - Zhongshen Hua's audit reports contained false records, with Ningxia Yuangao's 2018 and 2019 annual reports showing inflated cash, revenue, and profit figures [1][5]. - The firm failed to develop specific audit plans and did not adequately identify and assess risks, leading to significant deficiencies in fraud risk response and audit procedures [6][8]. Specific Audit Failures - The firm did not independently send confirmation letters and failed to monitor the mailing process, exposing the audit to risks of interception and alteration [11]. - In 2018 and 2019, Zhongshen Hua did not execute planned audit procedures to test the effectiveness of the financial reporting system, violating relevant auditing standards [7][8]. Penalties Imposed - The CSRC has ordered the confiscation of Zhongshen Hua's audit business income amounting to 754,717 yuan and imposed a fine of approximately 1,509,433 yuan. The two signing accountants, Zhao Gang and Wang Haiting, were each fined 250,000 yuan [2].

5月21日晚间，德银天下发布公告称，罗兵咸永道会计师事务所和普华永道中天会计师事务所（特殊普 通合伙）将于其当前任期届满后分别退任本公司国际财务报告准则和中国企业会计准则下的核数师。 公告称，鉴于公司未来审计服务的需要及为了维持良好的企业管治，本公司正在筹备新一任核数师的选 聘工作，因此董事会已批准不寻求在本公司股东周年大会上续聘罗兵咸永道及普华永道。据悉，罗兵咸 永道为普华永道会计师事务所（以下合称"普华永道"）在香港市场开展业务的主体。 值得注意的是，自德银天下2022年上市以来，罗兵咸永道便一直担任其核数师。德银天下年报显示， 2022年-2024年，德银天下向普华永道支付的服务费用分别为348.3万元、337.3万元、392.2万元。 这并非普华永道近期首次被上市公司解约。5月14日，李宁也曾发布公告称，公司拟聘任安永会计师事 务所为核数师，前任核数师罗兵咸永道会计师事务所将不再续聘。 事实上，受证监会立案调查影响，近年来普华永道接连遭上市公司解约。据21世纪经济报道，2023年， 普华永道中天在A股市场的客户合计106家，审计费用合计9.47亿元，在行业位居第二（仅次于立信）， 但2024年，这些客 ...

Core Points - The revised Anti-Money Laundering Law in China now includes specific non-financial industries, such as accounting firms, under its regulatory framework [1][2] - The draft management measures for anti-money laundering in accounting firms were released for public consultation, aiming to strengthen and standardize their anti-money laundering efforts [1][2] Group 1: Regulatory Framework - The draft management measures outline 30 provisions detailing the anti-money laundering obligations, supervision, and legal responsibilities of accounting firms [1][2] - The inclusion of accounting firms in the anti-money laundering framework is a response to the evolving methods of money laundering that bypass traditional financial institutions [1] Group 2: Implementation Requirements - The draft specifies requirements for internal control systems, risk assessments, and customer due diligence for accounting firms [2] - Accounting firms must refuse transactions or terminate business relationships if they identify a high risk of money laundering [2] - Obligations include reporting suspicious transactions to the Chinese Anti-Money Laundering Monitoring and Analysis Center through the Chinese Institute of Certified Public Accountants [2] Group 3: Oversight and Accountability - Responsibilities for oversight are assigned to provincial-level finance departments, the People's Bank of China, and industry associations regarding anti-money laundering efforts in accounting firms [2] - Legal consequences are established for accounting firms that violate anti-money laundering obligations, as well as for personnel involved in anti-money laundering activities who breach regulations [2]

Core Viewpoint - The Shenzhen Securities Regulatory Bureau has imposed administrative penalties on Lixin Certified Public Accountants for their audit of the financial statements of Rihai Intelligent Technology Co., Ltd. for the years 2018 and 2019, citing false records and inadequate audit procedures [1][4][11]. Group 1: Audit Violations - Lixin's audit reports and related documents for Rihai Intelligent contained false records, leading to inflated profits of 33.43 million yuan in 2018 and 3.68 million yuan in 2019, which represented 37.58% and 5.13% of the reported profits for those years respectively [1][4][10]. - The audit procedures for goodwill were inadequately executed, as Lixin relied on an asset evaluation report that did not consider the impact of minority shareholders' equity on goodwill, resulting in incorrect audit conclusions [2][5][9]. - The audit of main business income was also insufficient, with Lixin failing to account for significant financing components in a contract, leading to an overstatement of income by 2.13 million yuan [2][6][9]. Group 2: Penalties and Responsibilities - Lixin was ordered to correct its practices, had its business income confiscated amounting to 3.77 million yuan, and was fined 7.55 million yuan [11][12]. - The responsible auditors, Zhang Yong and Wang Zehui, received warnings and fines of 550,000 yuan and 500,000 yuan respectively for their roles in the audit failures [11][12]. - The regulatory body emphasized that Lixin's actions violated multiple provisions of the Securities Law and auditing standards, indicating a lack of due diligence in their audit processes [6][10][11].