US EditionHong Kong Regulators Fine PwC $166M over China Evergrande Audit
Regulators said PwC’s audits let Evergrande overstate revenue by 564 billion yuan and profits by 64.9 billion yuan over two years.
- On Thursday, Hong Kong regulators announced a HK$1 billion settlement and a six-month ban on PricewaterhouseCoopers from taking new clients, citing serious audit failures regarding the failed developer China Evergrande.
- The Securities and Futures Commission found that PwC substantially overstated Evergrande's annual revenue and profits for 2019 and 2020, with reported profits of 33.5 billion yuan and 31.4 billion yuan that should have been losses.
- Separately, the Accounting and Financial Reporting Council described the audit deficiencies as "particularly egregious," imposing a HK$300 million fine and HK$10 million in penalties for two former partners.
- PwC Hong Kong acknowledged its work "fell well below our high expectations" on Thursday, while Evergrande founder Hui Ka Yan recently pleaded guilty to fraud and bribery charges in China.
- China Evergrande remains in liquidation following its 2021 default, a collapse that intensified the property sector slump in China and continues to weigh on national economic growth.
21 Articles
21 Articles
Times of India
The Economic TimesPwC Hong Kong to pay Evergrande shareholders HK$1 billion in compensation, SFC says
PricewaterhouseCoopers LLP will pay HK$1.3 billion in fines and compensation to settle investigations into its auditing of collapsed property giant China Evergrande Group. The firm also faces a six-month suspension from new listed audit clients in Hong Kong. This agreement resolves regulatory matters stemming from audits over five years ago.
PwC Faces $190M Fine for Assisting Evergrande Fraud in China
The Hong Kong branch of a major accounting firm has been ordered to pay HKD1.3 billion (approximately USD190.2 million) in fines and compensation by local regulators following its involvement in uncovering financial fraud at China Evergrande Group. The firm will pay a fine of HKD300 million (around USD38.6 million) and will also provide HKD1 billion to compensate eligible minority shareholders of Evergrande who were harmed by the company’s false…
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