Bond Regulator Slams Accounting Firm, Firm Shoots Back

Pressure is building in the credit market, that's the one clear take away from this story.

Bloomberg: China Bond Regulator Punishes Accounting Firm for Lack of Help
A bond regulator in China punished a local accounting firm for failing to assist in a probe, highlighting how authorities are tightening controls over the market as debt defaults escalate.

The National Association of Financial Market Institutional Investors said Ruihua Certified Public Accountants failed to provide necessary documents in time concerning an investigation into the disclosures of Greenland Holdings Corp. and Shanghai Yunfeng Group Co., according to a statement on its website Tuesday. The Beijing-based regulator said it would suspend the accounting firm’s related business for one year, without giving details.

...In response to the regulator statement, Ruihua said Tuesday it has fulfilled its duties as much as it can and said the NAFMII ruling is “very imprudent and irresponsible,” according to a statement on its website. The accounting firm said it will seek legal ways to protect its rights.
EO: 交易商协会公开谴责 瑞华会计师事务所“针锋相对”
Reporters noted that Ruihua Certified Public Accountants has considerable qualifications in the industry, their customers include many central enterprises and listed companies.
Ruihua Certified Public Accountants issued a statement reads as follows:

June 21, 2016, the inter-bank market dealers association China (hereinafter referred to as "Dealers Association") which says I did not cooperate with the investigation, did not fulfill due obligations in the name of members, publicly available on its website, "Dealers Association Publication, condemns Ruihua Certified Public accountants and suspends its operations" and "ask reporters about Ruihua event. " I believe that these practices and related decisions are extremely hasty and irresponsible and I simply can not accept.

Given that I did not sign debt financing agreement with Shanghai Yunfeng (Group) Co., Ltd. (hereinafter referred to as "Yunfeng Group"), was not reporting accountant for Yunfeng Group issuance of debt financing instruments, therefore, I should not be classified as self-punishment object. In Dealers Association for investigation Yunfeng Group alleged disclosure violations carried out by the traders associations I have provided the information required, investigative work within the limits of its resources where I fulfilled its obligations.

In order to maintain the bond market fairness and justice, safeguard the dignity of the CPA profession, I will advocate for their rights through legal channels, to restore the reputation and the resulting economic losses.

Ruihua Certified Public Accountants (special general partnership)

June 21, 2016

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