RSM’s China expansion to result in 40% growth

A Chinese member firm of RSM is currently finalising a merger with a significant part of another leading firm in China.

Huapu Tianjian Certified Public Accountants (Huapu Tianjian) will merge with the Chinese firm to form RSM China, resulting in a 40% growth to the top-10 accountancy firm, and expanding their brand further into China.

Jean Stephens, CEO of RSM International said: “China is a crucial market for our clients who are increasingly looking for coordinated cross-border expertise that spans the globe.

“When Huapu Tianjian joined the RSM network, we were excited by their ambition and their client service approach.

“This merger is the next step in an ongoing growth strategy which will see RSM China achieve top ten status and prominence as a key player in the Chinese market”.

The combined workforce will now be made up of 3,200 partners across 15 offices, and positions the firm as a key audit, tax and consulting provider in the Chinese market.

In 2017, the top four accountancy firms in China was made up of (in order) PwC, Deloitte, BDO and EY, with KPMG in fifth, but none had more than 2500 employees at the time

Against 2017 figures, the merger would make RSM China the largest Chinese accountancy firm in terms of employees. 2019 figures were not available.

Huapu Tianjian joined the RSM network in December 2018 as part of a wider effort to grow into China, and the merger represents the second stage of this growth strategy.

Houfa Xiao, Managing Partner of Huapu Tianjian said: “Joining RSM has provided a platform for rapid growth.

“We have already climbed the rankings significantly and our short-term target is to join the top ten in China.

“With our new merger, as RSM China we will be even better placed to serve our national and international clients, and those of the wider RSM network looking to operate in the Chinese market.

“The new team brings strong expertise coupled with exceptional client service capabilities and we are excited to evolve our offering as a result.”

In 2015,  the president of the ACCA said China needed more accountants in order to raise standards of corporate governance.

At the time, China had 300,000 accountants serving a population of 1.3 billion, which compares to around 327,000 in the UK for a population of 64 million.

RSM’s expansion into the country will come as a welcome sign to industry observers that western businesses are willing to invest in China despite the volatile diplomatic and trade relationships, and they will hope it goes towards improving the standard of accountancy and thus ease potential investors concerns in the businesses in the country.