CX Daily: U.S. Audit Row Dims Big Accounting’s Prospects in China

The Big Four have dominated China’s accounting industry for decades, but growing competition from homegrown firms and the fallout from Beijing’s dispute with U.S. regulators could mean tougher times ahead.

Accounting /

In Depth: U.S. audit row dims big accounting’s prospects in China

For years, the Chinese Big Four eclipsed homegrown accounting firms, many of which were tarnished by scandal and a reputation for poor service and weak internal governance, and dominated the market for auditing U.S-traded Chinese businesses.

But their heyday may be over as they face mounting challenges on several fronts. They are caught in the crosshairs of a longstanding dispute between U.S. and Chinese regulators over access to the working papers of audits of U.S.-traded Chinese companies, while homegrown accounting firms, which have spent years building up their skills and brands, are taking market share.

Covid-19 /

China targets seniors in renewed Covid vaccination drive

China has set a Covid-19 vaccination target for 90% of people over 80 years old to have taken at least one dose by the end of January 2023, Caixin learned from multiple sources.

In addition, for those 80-or-above who are eligible to be fully vaccinated or ready for a booster, the goal is also to get 90% of them to get another shot.

China’s vice premier urges refining Covid response

Guangzhou lifts Covid lockdowns in parts of city

China says dominant omicron strain less of a threat than original Covid

FINANCE & ECONOMY

PMI /

China’s manufacturing activity contracts again, Caixin PMI shows

Activity in China’s manufacturing sector contracted for the fourth straight month as Covid-19 outbreaks across the country and stringent measures to contain infections continued to dampen both supply and demand, a Caixin-sponsored survey showed Thursday.

The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the country’s manufacturing sector, rose to 49.4 in November from 49.2 the previous month. It was the fourth straight month of readings below 50, which signal contraction.

Economy /

China to fully reopen by mid-2023, top UBS economist predicts

China is expected to fully lift its Covid restrictions in the third quarter of 2023, leading to a dramatic economic rebound, said Hu Yifan, regional chief investment officer and chief China economist at UBS Global Wealth Management.

The estimate echoes a forecast by Bloomberg economists, who said they expect a full reopening by mid-2023. A survey by Bloomberg News earlier this month showed that most economists see reopening starting in the second quarter of 2023 after China’s annual top political meetings.

Quick hit /

China’s yuan extends advance as reopening bets boost sentiment

BUSINESS & TECH

CATL, the world’s largest battery manufacturer, plans to start mass production of its sodium-ion batteries next year. Photo: VCG

Batteries /

Chinese firms talk up sodium battery as alternative for EVs

Chinese battery makers are accelerating research and production of sodium-ion batteries in the hope of tapping a new vein in the electric vehicle (EV) industry as it debates the cost of the alternative to lithium-based energy storage.

Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest battery manufacturer, plans to start mass production of its sodium-ion batteries next year. The company is integrating lithium into the cells to extend their range to meet the EV industry standard.

Electric cars /

XPeng warns of quarterly sales crash as losses widen

XPeng Inc. predicted revenue and car deliveries to drop in the current quarter after the Chinese electric-vehicle (EV) startup reported widening losses and slowing revenue growth in the previous three-month period.

The company's fourth-quarter revenue will most likely be between 4.8 billion yuan ($674.8 million) and 5.1 billion yuan, representing a year-on-year decrease of 40.4% to 43.9%, said XPeng’s CEO He Xiaopeng during a post-earnings conference call Wednesday.

Quick hits /

Auto dealers face mounting inventories as sales slow

TikTok CEO says U.S. data protection is a ‘solvable problem’

iPhone city maintains factory curbs as China tweaks Covid approach

Long Read /

What Chinese seniors have to say about vaccination

GALLERY

Dine-in returns for Guangzhou’s low-risk

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