The booming financial market in China has created tremendous new opportunities for accounting firms.
Gregory K. Erickson, global vice-chairman of Ernst & Young, was optimistic about the sector's outlook in an interview with China Daily in Dalian.
"There is an increasing demand of accounting services from the companies who are seeking to be listed -- to get a rising return from the booming capital market," Erickson said.
David Sun, chairman and managing partner of Ernst & Young Far East and China, shared the optimism.
"It (the equity market) is a good format to develop trade and production, to channel capital and companies," Sun said.
Erickson said greater participation by institutional investors would lead to a sound and rapid development of China's equity market.
Erickson also expects China's capital markets to open up further in the near future.
Echoing Erickson's perspective on the further innovation of China's financial markets, Sun proposed that the state-owned commercial banks, at the core position of China's financial system, should strengthen their competitive edge by accelerating overseas investment and increasing their global presence.
"It is a natural trend for commercial banks to go out to invest overseas," Sun said.
"We can expect the fast development of the state-owned commercial banks in the years to come and we really encourage their efforts in broadening retail product range to expand their earning sources in the future.
"We expect the domestic banks would provide more retail services in the future ranging from the credit card business, entrusting and leasing business."
As one of the Big Four accounting firms in the world, Ernst & Young has realized tremendous development in the past few years. In the past three years, Ernst & Young doubled the size of its business in China, with a total of 8000 employees.
"China has great potential for growth in the accounting market, as the number of qualified accountants in China is at a relatively low ratio compared with mature markets in developed countries of the world.
"More Chinese companies need accounting firms, not only for our accounting talents but also for the accounting standards we have."
Ernst & Young created the Entrepreneur Awards program in 1986. So it has now expanded to more than 125 cities in 40 countries, with awards presented to over 900 of the world's most successful and innovative entrepreneurs.
As the founder of the award program, Erickson introduced the program to China in 2006.
The "Ernst & Young Entrepreneur of the Year Awards" program honors the most outstanding entrepreneurs who inspire others with their vision, leadership and achievement.
"We really appreciate what the Chinese candidate entrepreneurs have accomplished in the fast growing Chinese economy," Erickson said.
(Shanghai Start September 8, 2007)
