How To Properly Handle Chinese Financial Document Translation
As being focused on the growing expansion after the economic shock of the COVID-19 crisis, many businesses have a strong interest in China as this potential market is now moving to expand its financial system. However, each business is required to have professional Chinese financial document translation services to deliver detailed financial papers.
Today’s blog post will mention the importance of financial translation in China as well as some kinds of the difficulties that come with it.
1. Why Financial Document Translation Is Important In China
1.1. General Overview
China is one of the greatest consumer marketplaces in the world with a population of more than 1.4 billion. Strong consumer markets along with social, economic, and political stability make a nation a wonderful place to invest. Because of this, and in particular because of the Chinese government’s ambition to develop the financial sector, more international businesses are investing to establish themselves there.
China’s commercial sector is presently experiencing a phenomenal expansion. The administration of the nation has made significant efforts to encourage the establishment of foreign funds on its soil. There are 3 factors outside of the current Foreign Investment Law‘s design that can explain China’s boom:
- Liberalization: Chinese asset managers have benefited substantially from China’s efforts to progressively open up its capital market.
- Expectation: By 2025, it is anticipated that the AUM of Chinese fund management companies would surpass 5.6 trillion US dollars, making China the second-largest market in the world behind the US.
- Resilience: The introduction of multibillion-dollar retail funds is proof that China has already seen signals of development following COVID-19. On the road to recovery from the epidemic, the nation is virtually always in the lead.
The commercial opportunities in the Chinese market are vast. But it’s never easy to establish a presence in a foreign market. This is even more ominous when it comes to financial document translation. You must accurately adapt your financial accounts into the necessary target Chinese if you want to grow your company and Chinese financial document translation services become quite crucial in this situation.
1.2. Common Types of Financial Document Translation
You must now be aware of the necessity for corporations to interpret financial statements. Not only is it essential to diligently monitor the company’s finances, but it is also crucial for regulatory compliance to translate financial documents. Documents that require translation include some of the following.
- Account Statements
An organization’s assets, liabilities, and shareholders’ equity are displayed on a balance sheet at any one time. This is one of the three fundamental financial statements used to assess a company’s financial standing.
- Yearly Reports
These papers summarize the financial status and all of the activities performed over the previous year of a company and they absolutely need Chinese financial document translation from the financial experts to ensure every correct detail.
- Earnings Statements
The income statement of a business provides a summary of its revenues and cash outflows. Profit and loss statements, which detail a company’s revenues and outlays for a specific time period, are another name for income statements.
- The flow of Cash Statements
Cash inflows and outflows are recorded in a company’s cash flow statement. Inflows are payments made, while outflows are payments made.
- Financial Statements Note
By inserting notes in its financial accounts, a corporation must assure adherence to all standards and laws. These comments are meant to provide additional context information for the information contained in the other financial statement papers in accordance with IFRS (International Financial Reporting Standards).
1.3. Why Do You Need Chinese Financial Document Translation?
The Fundamental Need
In order to comply with PRC laws, Chinese businesses must adhere to a number of yearly obligations. The State Administration for Industry and Commerce Market Regulation (SAMR), the State Administration of Foreign Exchange (SAFE), the Financial Authority, and the Customs Authority are among the organizations to whom yearly reports must be submitted. Documents of this level of importance must thus be translated carefully.
Reach and Reputation
Accessibility in more languages is correlated with greater effect and reach, which leads to eventual business expansion. And if you want to succeed in the Chinese market, you must successfully communicate about the financial aspects with all Chinese stakeholders in their own language.
The preferred method for communicating your business with regional partners and investors in the second-largest economy in the world is to use financial document translation services. Transparent communications show a company’s dedication in a foreign nation, earning trust and respect.
Culture and Language
One of the oldest and most sophisticated languages is Chinese. Nevertheless, Statista estimates that there are around 1.31 billion speakers of Chinese worldwide, including all of its varieties.
Chinese investors and business partners would always prefer to read financial paperwork in their own language. And without a thorough grasp of Chinese culture and language, your business risks losing clients, collaborators, and investors. In addition to accuracy, precision, and a thorough command of financial terminology, the finest Chinese financial document translation should have a thorough awareness of Chinese language and cultural subtleties.
You might be interested in:
- 5 Common Mistakes To Avoid In Financial Translations
- 4 Major Challenges Of Financial Translation and How to Overcome Them
- How to Make the Most Out of Financial Translations?
2. Huge Challenges When Dealing with Chinese Financial Document Translation
2.1. Chinese Characters
Chinese is a character-based language, unlike any other modern language. And it might be quite difficult when trying to understand all 50,000 characters which are used in Chinese.
In financial translation, one character may sometimes stand in for a notion, a word, or even many concepts. Each Chinese financial term’s number of syllables and the written character that denotes each syllable should be thoroughly understood by professional financial translators. Knowing which Chinese characters may be used alone and which must be used in combination with other characters is also crucial.
2.2. Chinese Grammatical Rules
Context is crucial when it comes to comprehending Chinese grammar in financial document translation. Singular and plural forms are not recognized in Chinese, nor are verbs conjugated to reflect tenses (since each verb has only one form). It is the translator’s job to infer this from the surrounding text.
2.3. Various Dialects
In China nowadays, more than 300 dialects are spoken. As if learning standard Chinese wasn’t complicated enough, each of these dialects has its own lexicon and is typically fairly different from the others.
Despite the fact that financial statements are typically translated into standard Chinese, you could ultimately need to do so. It is practically hard for a single expert to become fluent in every imaginable dialect because translators often focus on one or two dialects. You may get a lot of assistance from a seasoned Chinese translation company that collaborates with a group of subject matter specialists.
3. Top Solution for Your Chinese Financial Document Translation
In general, any information about your firm, including financial statements, future prospects, and information about risk concerns, may be difficult for your Chinese business partners to understand if the documents aren’t translated properly. It’s crucial to entrust the financial document translation to a qualified translation agency in order to ensure effective communication.
GTE Localize provides a pool of native speakers with more than five years of experience in the translation sector and years of experience translating financial papers. Our translators are prepared to assist you with all of your financial translation needs because they are also industry leaders in the accounting and financing fields.
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