Concerns about data security have prompted Chinese authorities to ask state-owned firms to stop using the four biggest global accounting firms as Beijing seeks to curb the influence of Western auditors. China’s Ministry of Finance is among government entities that gave informal guidance to some state-owned enterprises as recently as last month, urging them to let contracts with PwC, EY, KPMG and Deloitte expire, the report said, quoting sources.
While offshore subsidiaries can use the global auditors, their parent firms were urged to hire local Chinese or Hong Kong accountants when contracts come up for renewal.
Data policy is one of several areas over which China has tightened its scrutiny to try to ensure practices do not threaten the country's national and economic interests. Geopolitical tensions are also running high.
Baidu announced a $5 billion share buyback after reporting better-than-expected revenue, reflecting how its cloud computing service is offsetting an advertising lull. Its shares gained 6 per cent in pre-market US trading. Sales were at 33.1 billion yuan ($4.8 billion) quarter ended December, compared with expectations for 32.1 billion yuan.
- Bloomberg
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