Hong Kong regulators fine PwC $166M over China Evergrande audit

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PwC has been fined $166 million in Hong Kong over its audit work for the collapsed Chinese property developer Evergrande.

The territory's accounting regulator said Thursday it has also imposed a six-month ban on PwC from taking new clients and sanctioned two former partners.

The fines follow a probe that found Evergrande had overstated revenues of over $80 billion in its 2019 and 2020 financial statements which were audited by PwC. Evergrande, one of China's biggest developers, defaulted in 2021 and had roughly $300 billion in liabilities.

Its downfall highlighted the liquidity crisis in China's property sector.

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