Daily Archives: May 23, 2014

Landmark accounting case – will it be overturned?

Photo: Hans Mahncke

Photo: Hans Mahncke

The High Court in Hong Kong has held that EY (formerly known as Ernst & Young) has to hand over audit documents of a Mainland Chinese firm whom EY had previously helped with an intended listing on the Hong Kong Stock exchange. This is big news as Chinese law apparently prohibits such documents from being revealed as they are deemed to be “state secrets”. Yet another instance of the ever-growing friction between China’s predisposition to secretiveness and its internationalisation efforts. What will be very interesting is to see whether EY get leave to appeal to the Court of Final Appeal and whether – just as they did in the Congo case (Democratic Republic of Congo and Others v FG Hemisphere Associates LLC [2011] HKCFA 42) – the Court of Final Appeal will find some wiggle room in the name of state sovereignty.

You can read the story about today’s judgment here: http://www.ibtimes.co.uk/ey-loses-china-firm-audit-document-protection-lawsuit-after-landmark-hong-kong-ruling-1449700