Set in 2010, the case discusses the strategic directions Hong Kong could pursue, particularly vis-a-vis China, as it attempts to preserve its preeminence in the region. In 2010, the Hong Kong Exchange announced that it would permit listed Chinese companies to report competing with increased global competition to attract listings from Chinese companies and also using Chinese GAAP without reconciliation to IFRS. The exchange was reacting to the demands of its clientele that was mainly Chinese.
Nevertheless, there were concerns around whether this change would undermine Hong Kong's standing as a financial center in the long term. Hong Kong's position as a global financial power station was due in part to its demanding emphasis on enforcement and compliance; the high corporate governance standards of Hong Kong could be, compromised by enabling businesses to report under Chinese GAAP, the practice of which was highly changeable.
PUBLICATION DATE: September 22, 2011 PRODUCT #: 112035-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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