The Shenyang Intermediate People's Court accepted the case last Sunday.

The case means Chinese investors are gradually learning to protect their interests via laws and also signals an 'international' case as it involves the B-share markets, industry experts said.

"There have been no lawsuits against the big four international accounting companies in China, although some have been under scrutiny elsewhere after a slew of corporate scandals in the US involving the big four," a CPA at a Beijing-based accounting company told XFN.

"But I don't think the investor will win the case as there are too many of these kinds of cases," the CPA said, adding if the investor wins, many other investors will sue listed firms and related companies.

The spokespersons in both KPMG's Beijing and Hong Kong subsidiaries, which were sued by the investor, were not available at the moment for comment.

"I think the result of the case is uncertain but the action is very significant to the legal system and the stock market development in China," Huang Weimin, a partner of Grandall Legal Group, told XFN.

Huang said investors should not lose their confidence in China's legal system, and although there have been scandals in China's securities markets in the past, many regulations and laws are improving.

Jinzhou Port was fined 100,000 yuan by the finance ministry last September for the fraudulent booking of a combined 367.17 million yuan in income between 1996 and 2000.

The big four accounting companies are Ernst & Young, PricewaterhouseCoopers, KPMG and Deloitte & Touche.

-- Linda Zhou, Beijing