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This article was first published in the April 2016 China edition of Accounting and Business magazine.

In 1999, Zhang Ke quit his role as managing partner at Coopers & Lybrand, China. A certified accountant, he set up his own firm, ShineWing, the following year, at a time when a growing number of firms were merging and embarking on fierce competition for clients and markets. 

The lack of funds and customers proved tough at first. ‘I started from zero,’ Zhang recalls. ‘It was difficult, but I kept believing that I could run a highly recognisable Chinese accounting firm with international influence.’

Despite the difficulties, Zhang did not hurry to find customers and grab market share. With a proven track record in running an international accounting giant, he focused on building a strong foundation for his firm. This involved setting up various internal infrastructures, quality control and technical systems. He also implemented stringent risk control to enhance the trustworthiness of his company’s products.

‘Others believed it was most important to get customers and market share, but I adopted an opposite strategy and focused on internal strengths rather than market,’ says Zhang, who is also vice president of the Chinese Institute of Certified Public Accountants. ‘I believe that an accounting firm must have a good reputation and trustworthiness to gain recognition from clients and the communities.’

This philosophy quickly set ShineWing apart from its rivals. Within three years, with a solid foundation of professionalism, the firm ranked first among Beijing’s accountancy firms with revenue of RMB84m. Zhang’s ambition to turn ShineWing into an international accounting network had come true. One of the first Chinese accountancy firms to go overseas, ShineWing was listed in the top 19 world international firms ranked by International Accounting Bulletin (IAB) in both 2014 and 2015. Zhang credits this success as being due to the firm’s effective management and the value it places on independence when developing member firms.

ShineWing’s growing prominence on the international scene has been widely recognised; last year, the company won the IAB’s Rising Star Network award category. ‘ShineWing’s nomination caught the judges’ eyes thanks to its network’s strategy as the leading Chinese organisation to come away from its domestic market and present itself as an important player on the international scene,’ IAB wrote. ‘Judges have commended the network’s growth in Asia Pacific and voiced their expectations to see the network’s success in other regions of the world like Latin America and Europe.’

Skills and standards

As chairman and managing partner of ShineWing, Zhang is responsible for leading the direction of, and strategies for, development, as well as establishing internal mechanisms and management infrastructure. He also takes charge of skill building and maintaining standards of professionalism.

Upon graduation with a Bachelor’s degree in economics from Renmin University of China in 1982, Zhang began his accounting career at CITIC Group. In 1993, he joined Coopers & Lybrand as managing partner, a position he held until he left in 1999. During his tenure at the multinational professional services network, he was involved in key achievements in a number of areas, including initial public offering planning, auditing of listed entities, business strategy and restructuring, merger and acquisition planning, and managerial structure reforms.

An acknowledged expert in the profession, Zhang was recognised by China’s Ministry of Finance as one of the Top 10 Outstanding Accountants of the Year in 2005. In 2014, IAB honoured him in its Global Accountancy Power 50. 

A key part of ShineWing’s international vision is its rolling five-year development action plan. ‘We will reach the goals set out at different stages in the plan,’ Zhang says confidently.

International outlook

Apart from merging with other Chinese accountancy firms to increase its local market share, Zhang continuously develops ShineWing’s global markets. In 2005, he established its first member firm in Hong Kong. 

‘We were the first Chinese accounting firm to merge with a Hong Kong firm and compete with the Big Four in the Hong Kong market,’ he says. ‘It became one of the top 10 financial news stories in China that year.’

Zhang has taken his lead from other mainland firms in setting up branches abroad. ShineWing established a division in Singapore in 2007, Australia in 2008, Japan in 2011 and, most recently, Pakistan in 2015. ‘We set up member firms in places where Chinese firms are active,’ he says. ‘For example, Chinese enterprises have been very active in Australia in recent years, and they would need all kinds of financial services,’ he says. In 2015, Australian accountancy firm Moore Stephens Melbourne joined as a member firm and was renamed ShineWing Australia. 

In order to fulfil it ambitions overseas, ShineWing focuses on enhancing the knowledge and skills of staff in order to meet the rules and regulations in target countries. Every year, the firm provides training for employees from different grades and service areas; each department also organises discussion sessions and knowledge upgrade meetings. 

In order to compete in international markets, says Zhang, a firm must be familiar with the rules of international markets. ‘It needs to have the resources and ability to serve the target nation, including the systems, management, professionalism, IT skills and talent,’ Zhang says. 

To further develop overseas markets, Zhang employs international talent and encourages local staff to learn international accounting standards and improve their English. In order to retain talent, ShineWing also offers promotions and salary rises to employees who have shown a willingness to develop their international skills. 

Partner culture

Since its inception in 2000, ShineWing has grown rapidly into a multinational accountancy firm with both local and global recognition. Zhang says that its success is due to both external and internal factors. External factors include China’s rapid development over the past 30 years, government support for professional service firms and increased fund flow around the world. Internal factors include the firm’s partner culture and management systems, he adds. 

‘Our partners can coordinate strongly with each other,’ he says. ‘To achieve our objectives, they can put aside minor differences to seek common ground and overcome hardship together.’

The other success factor is the firm’s corporate governance, which puts an emphasis on sustainability. ‘We adopt stringent risk control and quality management measures, and a centralised management system on human resources, finance and business controlled directly by our headquarters, allowing us to control risks and rearrange resources,’ he says. ‘The result of this is that we have gained recognition and trust from our community, industry and clients, and become one of the top accounting brands in China.’

Going forward, one of Zhang’s aims is to secure continuous growth in ShineWing’s niche auditing business, as well as further developing its management consultancy and taxation services. ‘We will focus on existing and potential clients to intensively develop these services, and attract talents to improve our ability to serve them,’ he says.

Top of his to-do list is to accomplish the targets in the firm’s latest five-year plan. These include raising its capability to deliver high-end services, innovating both service and management modes, and expanding in China, as well as developing more member firms around the world. 

‘These are all the things we need to do in 2016, so we will be quite busy!’ he concludes. 

Sherry Lee, journalist