China now allows two more firms to audit Hong Kong-listed firms

Starting mid-May, Chinese companies trading in Hong Kong will have more options when picking auditors. The country’s finance and stock market watchdogs just greenlit RSM and Baker Tilly, two accounting firms based in China, to handle these audits. This move follows a 2025 decision to expand the list of approved firms, giving mainland businesses a cheaper alternative to big international names.Cheaper audits matter because many Chinese firms list in Hong Kong to reach global investors. High audit fees can eat into profits, and local firms might offer lower prices since they know the market better. This change could also make it easier for smaller Chinese companies to afford compliance without sacrificing quality. The timing isn’t random. By May 2026, both sides plan to tighten rules on cross-border audits. Allowing more local firms now could smooth out the transition. It also hints at Beijing’s push to strengthen ties between mainland stock markets and Hong Kong’s exchange, often seen as a financial bridge between China and the world.