Two Mainland Accounting Firms Approved for H‑Share Audits, Lowering Listing Costs and Deepening Mainland–Hong Kong Market Integration**The Ministry of Finance, the CSRC, and Hong Kong’s Accounting and Financial Reporting Council have approved two additional mainland accounting firms—RSM China and ShineWing—to conduct H‑share audit work, marking the first expansion of the list since 2010.
Hong Kong’s capital market is taking another step toward deeper integration with the mainland. For the first time in more than a decade, two additional mainland accounting firms—RSM China and ShineWing—have been granted approval to conduct audit work for H‑share companies, beginning May 15. The decision, jointly announced by the Ministry of Finance, the China Securities Regulatory Commission (CSRC), and Hong Kong’s Accounting and Financial Reporting Council, expands the roster of eligible mainland firms from 10 to 12.
The move comes at a time when demand for Hong Kong listings among mainland enterprises continues to rise. With only a limited number of firms previously authorized to audit H‑share companies, service capacity has been stretched, pushing up audit costs and constraining the availability of diversified, international‑standard audit services. The new additions are expected to ease these pressures, reduce listing costs, and strengthen cross‑border capital‑market connectivity.
The expansion was highly selective. Under the 2025 Notice governing the process, applicants were required to meet stringent financial and operational thresholds, including revenue of at least RMB 1.5 billion, audit revenue of at least RMB 1 billion, and either RMB 250 million in securities service revenue or at least 100 listed‑company audit clients. Firms also needed a minimum of 800 CPAs. Regulators further evaluated internal governance, information‑system maturity, risk‑bearing capacity, and Hong Kong audit experience, conducting on‑site inspections before finalizing the recommendations.
Importantly, the approval is not permanent. Regulators emphasized that H‑share audit qualifications will be subject to dynamic management and exit mechanisms. Firms that fail to maintain required standards may have their recommendation withdrawn in consultation with Hong Kong authorities. Industry experts say this marks the beginning of a more competitive and disciplined H‑share audit market, where firms must continuously demonstrate capability and compliance.
Regulatory coordination will also deepen. The Ministry of Finance will include H‑share audit engagements in its annual quality‑inspection program, ensuring rolling oversight of approved firms. The Ministry of Finance and the CSRC will strengthen follow‑up supervision and enhance information sharing with Hong Kong regulators, forming a unified regulatory front.
For accounting firms, the new approval brings both opportunity and responsibility. Regulators have called on firms to strengthen internal governance, enhance quality management, and build international service capabilities. Firms are expected to implement unified management across personnel, finance, business, technical standards, and information systems, while reinforcing risk controls and cultivating a culture of integrity and quality. They are also encouraged to expand cross‑border operations and strengthen their presence in global networks.
Industry observers believe the expansion signals a shift from a static to a dynamic H‑share audit market. As more mainland firms gain eligibility, the cost of Hong Kong listings for mainland enterprises is expected to decline, and the flow of capital and professional services between the two markets will become more efficient. Over the long term, the move is seen as a key step in enhancing Hong Kong’s role within China’s broader financial development strategy.
