CHINA / Foreign Media on China
Big four firms plan boost to China staff
(FT)
Updated: 2006-06-05 09:30
http://news.ft.com/cms/s/bdc9a522-f3ef-11da-9dab-0000779e2340.html
The big four accountancy firms are planning to boost their staff numbers
in China by more than 20 per cent this year as they grapple with staff
shortages that threaten attempts to boost investor confidence in the
domestic stock market.
Demand for international accounting expertise is soaring in China as
giant state-owned enterprises seek listings overseas, smaller domestic
companies prepare to adopt new accounting standards, and the Chinese
subsidiaries of foreign companies continue to grow.
PwC, the biggest firm, has the most ambitious plans, aiming to add 1,550
graduates and 500-700 experienced people to its combined Hong Kong and
China staff of 6,450.
But because China has a dearth of qualified accountants, the big four are
likely to be competing for many of the same candidates as they seek to
add between 20 per cent and one third to their staffing levels.
The shortage of accountants threatens government efforts to bolster
investor confidence in the domestic stock market by promoting accurate
accounting and independent auditing.
The coveted status of the profession in China contrasts with the years
after the Cultural Revolution when accountants were among hundreds of
thousands of professionals and intellectuals who were denounced, sent to
internal exile, or even killed.
Even after the launch of economic reforms in 1978, accountants continued
to use a Soviet bookkeeping system designed for a centrally planned
economy, quite distinct from western accounting. This has resulted in a
severe shortage of accountants with seniority and knowledge relevant to
its modern economy.
The lack of outside experts able to carry out due diligence also hinders
the access of some companies to overseas capital markets. Stephen Taylor,
a partner at Deloitte in Hong Kong, said: ��We are having to turn work
away because we just don��t have enough people. For IPOs and M&A we��re
not hungry for the work, so we can be a bit more selective.��
Deloitte, which employs 4,960 people in the mainland and Hong Kong, wants
to hire 1,500 new staff by the middle of next year. KPMG aims to
supplement its 4,500 with 1,000 graduates and 300 senior people this year.
Francis Siu, senior partner at KPMG in Beijing, said: ��The fact we
don��t have enough people doesn��t stop us taking a good client but they
have to be very tempting.��
The shortage is being made worse by poaching from outside the sector as
banks and other companies offer high salaries to lure financially
literate employees who speak Chinese and English. Because of a particular
lack of senior accountants, the big four have begun importing partners
who speak Chinese from Hong Kong, Taiwan, Singapore and Malaysia.
Including such imp-orts, Ernst & Young plans to raise its staff of 3,500
in mainland China to 4,300.
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