Purposeful business
Our commitments: Always act with a clear purpose
KPMG aims to become the most trusted and trustworthy professional services firm. Guided by our core values of Integrity, Excellence, Courage, Together, and For Better, we partner with organisations to help them seize opportunities and navigate challenges with confidence.
Under KPMG’s global Collective Strategy 3.0, we continue to tailor our approach to China’s market, operational, and regulatory environment. Our Trust and Growth agenda focuses on transformation and technology, ensuring we deliver exceptional services that support China’s high-quality economic and social development. As a catalyst for digital transformation and sustainable development, we align our approach with China’s 15th Five-Year Plan, continuously innovating and enhancing our service offerings.
Bringing our values to life at Global Values Week
In May 2025, colleagues across KPMG’s global network actively participated in a highly impactful Global Values Week. Through a series of initiatives—including insightful dialogues with leadership experts, the Global Ethical Avengers quiz challenge, KPMG China’s annual enCORE Awards ceremony, and local gatherings—our people gained a deeper understanding of KPMG’s values.
During the week, KPMG Global Chairman and CEO Bill Thomas engaged in a thought-provoking dialogue with renowned leadership expert Simon Sinek. They explored pathways to achieving our ambition of becoming ‘the most trusted and trustworthy professional services firm’, emphasising the critical role of corporate values in building trust.
Additionally, the Global Ethical Avengers quiz challenge reinforced our people’s understanding of KPMG’s core values and the CARE framework. We also hosted the KPMG China enCORE Awards ceremony, where 33 outstanding individuals and teams were honored as Values Heroes & Heroines. This event was livestreamed to nearly 700 colleagues.
Source: KPMG China's Global People Survey results 2025
- KPMG China
- KPMG China’s Board and Executive Committee
- Our Impact Plan: turning ambition into action
KPMG is the brand under which the member firms of KPMG International Limited (‘KPMG International’) operate and provide professional services. KPMG's member firms and affiliates operating in the Chinese Mainland, Hong Kong SAR and Macau SAR work together on a collaborative basis, subject to local applicable laws, and together are referred to as ‘KPMG China’, the ‘firm’ or ‘we’ throughout this report, unless otherwise specified.
KPMG China is not a legal entity and does not hold share capital or have shareholders. The legal entities operating under KPMG China include KPMG (a Hong Kong SAR partnership), KPMG (a Macau SAR partnership), KPMG Advisory (Hong Kong) Limited, KPMG Huazhen LLP, and KPMG Advisory (China) Limited, each of which is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.
At KPMG China, governance rests with the Board and the Executive Committee. The Board, as the primary governance and oversight body, consists of elected partners from diverse business sectors and is responsible for overseeing and advising on the firm’s strategic direction and related matters. The Executive Committee serves as the core management body of the firm, primarily comprising partners leading our four key regions and core business functions, and is responsible for ensuring the effective implementation of the firm's strategies. Except for the Chairman, the members of the Board and the Executive Committee do not overlap. Together, the Board and the Executive Committee work closely to drive the long-term development of the firm.
All Board members possess professional qualifications and deep industry knowledge in their respective fields, and some of them also have extensive expertise in ESG-related areas such as energy and natural resources. These members bring valuable ESG insights and experience into Board’s decisions and business domains. Additionally, while fulfilling their internal responsibilities, the Board and Executive Committee members actively engage in various external organisations and activities, such as industry associations, professional bodies, and non-profit institutions, further enhancing the firm’s influence and commitment to social responsibility.
Since FY21, KPMG China’s dedicated ‘Our Impact Plan’ (OIP) team has been at the heart of our ESG journey. Guided by a robust governance structure, the OIP team transforms strategy into measurable progress – reports regularly to the Executive Committee, working hand-in-hand with pillar leads, business units, and stakeholders to deliver on our ESG commitments. Each pillar lead drives strategic initiatives within their respective domains, including anti-corruption, inclusion, diversity, and equity (IDE), decarbonisation, and community engagement.
While our OIP team drives our own ESG commitment forward, our client-facing ESG service team empower clients with diversified services, including ESG governance, assurance, strategy, and transformation. This hand-in-hand collaboration ensures we don’t just talk about impact – we deliver it, both within our firm and for our clients.
At KPMG China, we implement a rigorous Enterprise Risk Management (ERM) process led by the Executive Committee and overseen by the Board to ensure its robustness and effectiveness. The ERM process helps identify and manage significant risks that could impact the achievement of the firm’s strategic objectives, providing critical insights for decision-making. We also adopt a corresponding ERM approach to analyse top risks and develop action plans across business functions – Audit, Tax and Advisory.
The identification, assessment, and management of risks, as well as ensuring quality, are responsibilities shared by all functions and our people. We have established a central team comprised of dedicated professionals and led by the Head of Quality and Risk Management, to oversee and maintain the firm’s culture of quality and integrity. This team monitors key findings from quality monitoring and compliance programmes, evaluates the effectiveness of remedial actions, and provides ongoing guidance in areas such as quality control, compliance, regulatory inspection liaison, information protection, data privacy, contract management, professional ethics and independence, and client and engagement acceptance. This supports daily operations and enables business teams to proactively assess and manage risks.
Nationwide Quality and Risk Leaders community
Since 2016, KPMG China has been running the Quality and Risk Leaders (QRLs) Programme, which has cultivated over 160 QRLs and formed a National QRLs community. In 2023, the National QRLs Committee was also established. This initiative has strengthened communication between business teams and the central team, driving more efficient, high-quality and timely decision-making across the business. This programme also enhances the QRLs’ career development and equips them with the quality and risk mindset, enabling them to become trustworthy leaders who contribute to the firm’s Trust and Growth goals.
At KPMG China, information protection is a key priority and we implement rigorous information security and privacy protection processes to ensure the data security and privacy protection of both our clients and our people are maintained. We regularly review and enhance our approach to respond to evolving security threats and new emerging technology risks such as those from the use of artificial intelligence (AI).
- Data security
- Data privacy
- Trusted AI framework
Our information security and data protection processes have obtained ISO/IEC certifications and achieved Level 3 filing and testing under the Multi-Level Protection Scheme (MLPS 2.0). Our controls are multi layered across our endpoints, network infrastructure, servers, and cloud environments, while our processes are regularly updated to reflect changes in our information security strategies and the technology and risk landscape.
Our people are subject to annual data security and privacy protection refresher training, and we actively communicate awareness updates to ensure up to date information is communicated to all our partners and staff. We regularly perform phishing simulation exercises to reinforce vigilance and maintain awareness throughout the year.
We comply with privacy protection laws and regulations through our privacy information management system. Our privacy control measures are formalised in our privacy policy which covers the full business lifecycle. We regularly perform privacy impact assessments and provide required collection statements and policies when we collect personal information. Our privacy information management system is ISO/IEC certified and is subject to annual testing.
We promote KPMG’s Trusted AI framework to ensure the safe, responsible, and ethical usage of AI solutions. Our AI tools have undergone comprehensive internal review to ensure they have robust controls aligned to our Trusted AI framework. Internal communications and trainings are actively updated to our people covering responsibilities in the use of AI tools, enhancing their knowledge in risks and obligations.
Strengthening AI security:
Our AI-powered platform achieved MLPS 2.0 Level 3 filing and testing
In FY25, we launched our internal generative AI tool, Xuanyuan Ki Chat, as our core AI-powered platform. We achieved Level 3 filing and testing under the Multi-Level Protection Scheme (MLPS2.0), demonstrating our commitment to maintaining a secure environment and protecting data for our clients and people.
Our commitments: Lead the profession in audit quality
Audit quality
Audit quality is fundamental to maintain public trust and is the key measure on which our professional reputation stands.
We continuously refine our audit processes, methodologies, and quality management systems to ensure our work consistently meets rigorous professional standards.
In 2025, we continued to drive the digital transformation of audit services through targeted innovations, including the launch of a cutting-edge audit application platform and KPMG Audit Guidance AI-chat, powered by generative AI. To ensure these tools are used responsibly, we provide comprehensive training on our Trusted AI framework, empowering our professionals to lead with confidence.
Since June 2020, we have published six consecutive annual Audit Quality Reports. They provide insights into how we build a culture of quality, advance digital transformation, strengthen technical support, and refine our monitoring activities.
Scan the QR code to watch our Embrace Digital Technology video.
Strengthening the foundation of trust through consistent execution: 2025 Audit Quality Week
In 2025, KPMG China brought Audit quality Week to all 24 offices nationwide, engaging over 5,000 audit partners and professionals through both online and in-person participation. This initiative has reinforced our unwavering commitment to quality, deepened our people’s understanding of audit excellence as a core value, and inspired ongoing efforts to enhance the quality and efficiency of our audit work.
Source: KPMG China's Global People Survey results 2025
Our commitments: Drive a responsible tax practice
Responsible tax approach
KPMG China operates as a value-driven tax practice. Guided by KPMG’s global Responsible Tax principles and international quality framework, we are committed to delivering customised, comprehensive, and high-quality tax advisory services and support to our clients. Our professionals act with integrity and comply with relevant laws, regulatory requirements, and professional standards.
We work proactively with tax authorities and clients to deliver expert tax consulting and compliance solutions that empower businesses to optimise tax strategies and mitigate risks. We actively participate in industry forums, sharing best practices to foster the sustainable growth of the tax profession.
Moving forward, we remain committed to facilitating constructive dialogue with stakeholders and collaborating with them to advance responsible tax practices.
China Tax Insights
China Tax Insights, is a series of reports published by KPMG, providing timely analysis of and practical recommendations on China’s evolving tax policies for our clients. Throughout FY25, we issued multiple reports covering areas including supply chain (encompassing customs, indirect tax, incentives, and transformation), life sciences, and transfer pricing.
Acting transparently with integrity and accountability
Our commitments: Act lawfully, ethically and in the public interest
- Code of Conduct
- Strengthening our ethical culture
- Speaking up responsibly
- KPMG China Disciplinary Policy
- Maintaining independence
Based on our Purpose and Values, the KPMG China Code of Conduct (‘Code of Conduct’) describes clearly how KPMG people are expected to treat each other and our clients, and our duty to uphold the public interest. The Code of Conduct demonstrates how our Values inspire our goals and guide all of our behaviour and actions. Everyone at KPMG China must follow the Code of Conduct and confirm their compliance annually.
KPMG China is committed to fostering a culture of ethics and collaboration, ensuring our decisions align with ethical standards. Everyone is expected to make decisions that uphold these standards and has a responsibility to raise concerns proactively if they encounter any situations inconsistent with our Values or the Code of Conduct. We take confirmed misconduct seriously and will address it with necessary measures, including disciplinary action.
To reinforce integrity in professional learning and development, we have been conducting the training assessment monitoring programme since March 2025. This programme focuses on identifying and addressing any inappropriate behaviour related to the completion of training assessments which would be dealt with in accordance with our disciplinary policy.
CARE in Action, foster trust and responsibility
In FY25, we released the ‘CARE-in-Action’ series of short videos, focusing on a range of risk management themes. The series aims to help our people continuously apply the CARE framework to everyday scenarios, such as responsible use of AI and maintaining independence to strengthen our culture of trust.
At KPMG China, each of us has a responsibility to speak up – whether to share our views, contribute ideas or raise concerns. When potential misconduct is identified or suspected, speaking up is not merely encouraged – it is our professional obligation.
We provide our people with clear guidance and multiple communication channels, enabling them to choose the method that best suits their needs – whether through a direct dialogue with their manager, a written report, or using a hotline, including but not limited to the KPMG China Ethics Hotline and the KPMG International Hotline.
We prohibit retaliation against anyone who, in good faith, reports a possible violation or participates in an investigation, even if sufficient evidence is not found to substantiate the concern. This commitment is clearly set out in policies such as the KPMG China Staff Handbook and the Code of Conduct.
Fostering an open and responsible Speak Up culture
We encourage our people to speak up with the right intention, the right approach, and the right channel, guided by the CARE framework. In FY25, KPMG China launched a Speak Up Responsibly campaign, which included scenario-based e-quizzes, guidelines, and sharing of speak-up stories by colleagues. These efforts aim to empower everyone to share their ideas, suggestions, and concerns and actively engage in conversations to contribute to our shared success.
KPMG China’s Disciplinary Policy provides clear, transparent, and consistent guidelines for managing disciplinary processes and handling misconduct issues in a procedurally fair and legally compliant manner. This Policy also aims to ensure that reported misconduct issues with preliminary evidence and reports made in good faith are properly reviewed and investigated, that the root cause is ascertained, and that mitigation measures are implemented to prevent recurrence.
Maintaining independence is crucial to our business operations. At KPMG China, we maintain objectivity in all our work and do not allow any bias, conflicts of interest, or undue influence to override our professional or business judgments at any time, including when deciding to accept or continue with clients or engagements.
Our independence policies and procedures adhere to regulatory independence requirements. The firm’s Ethics & Independence Partner is responsible for communicating and implementing these policies and procedures, covering independence requirements for firm and personal financial interests, employment relationships, partner/signing CPA rotation and non-audit services.
All partners and staff must follow the firm's policies and procedures related to professional ethics and independence. We continuously provide relevant guidance, communications and training courses, and have developed and released a range of digital tools to assist them in achieving these ends and building public trust.
Our commitments: Work against corruption in all its forms
Upholding integrity and enforcing zero tolerance for corruption
At KPMG China, we uphold the highest ethical standards and have zero tolerance for bribery and corruption in any form. We have enacted our Code of Conduct and comprehensive anti-bribery and corruption requirements.
All partners and staff are required to complete annual integrity training to deepen their understanding of anti-corruption laws, regulations, and firm policies. We also regularly remind our people of the rules regarding gifts and hospitality, and adopt stringent approval and reporting mechanisms to prevent conflicts of interest, ensuring transparency and compliance in business activities.
When acquiring new business engagements and maintaining existing client relationships, enhanced know-your-client (KYC) procedures are conducted to understand and manage potential risks in accordance with our professional standards and ethical code. We provide annual mandatory training for all KPMG partners and client service staff on anti-money laundering and the latest KYC procedures.
Respecting human rights
Our commitments: Respect human rights
At KPMG China, we respect and uphold human rights while ensuring our operations comply with legal requirements and our human rights commitments. Our Code of Conduct explicitly states that we do not tolerate behaviour that is illegal, unethical, or that otherwise breaches human rights standards.
To strengthen supply chain management and support fundamental rights, business ethics, and environmental sustainability, we have implemented the KPMG China Supplier Code of Conduct, which requires suppliers to adhere to principles in key areas such as governance and ethics, labour rights, health and safety, environmental sustainability, and business conduct, and to integrate these principles into their business practices through responsible actions.
