China to Double Maximum Fines for Fraudulent Accounting Firms

China will double the maximum financial penalties for accounting firms that issue fraudulent reports and slap lifetime bans on accountants guilty of intentional crimes, aiming to restore investor confidence following a wave of corporate scandals.

Taking effect Jan. 1, 2027, the update to the Law on Certified Public Accountants targets rampant misconduct and auditing failures in the country’s capital markets.