Accounting authorities from the Chinese mainland and Hong Kong signed a joint statement on accounting standards convergence in Hong Kong on Friday, saying "material progress" has been made in converging accounting standards for both sides during the past years.

The joint statement, signed by Liu Yuting, Director-General of Administrative Office of China Accounting Standards Committee, and Winnie Cheung, Chief Executive and Registrar of Hong Kong Institute of Certified Public Accountants (CPAs), may boost the confidence of international investors on mainland accountants' financial sheets.

Paul Chan, President of the Hong Kong Institute of CPAs, said the move by both sides would help more mainland enterprises to raise funds in the Hong Kong stocks and lift international investors' confidence on accountants from the Chinese mainland and Hong Kong.

According to the statement, both sides agreed that the new China Accounting Standards have substantially converged with the Hong Kong Financial Reporting Standards, which had already converged with international financial reporting.

The two accounting regulators agreed to enhance their cooperation and exchange in accounting standards and provide high quality international financial statements.

"It is an urgent need for the Chinese mainland to converge its accounting standards with the rest of the world to respond to the globalization of capital markets," said Vice Minister of Finance Wang Jun, also Secretary-General of China Accounting Standards Committee, after the joint statement's signing ceremony.

"The convergence would also greatly reduce unnecessary trouble in the future," Wang said, adding the Chinese mainland would make further efforts to train more accountancy talents in the coming years.

In supporting the converged accounting standards, the Ministry of Finance and the committee would soon launch a talent project to train accounting senior accountants, certified public accountants, accounting research fellows and accounting personnel in large enterprises within 10 years.

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