PwC Hong Kong Involved in Evergrande Audit Misconduct, Agrees to Pay 4 Billion NTD to Shareholders
PwC Hong Kong reached a settlement with the SFC to pay 1 billion HKD to Evergrande's minority shareholders, following severe audit failures regarding the developer's 2019 and 2020 financial statements.
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- 📰 Published: April 24, 2026 at 11:15
- 🔍 Collected: April 24, 2026 at 11:31 (16 min after Published)
- 🤖 AI Analyzed: April 25, 2026 at 02:39 (15h 7m after Collected)
Central News
(CNA Reporter Chang Chien, Hong Kong, 24th) PricewaterhouseCoopers Hong Kong (PwC HK), due to misconduct in auditing the Chinese real estate firm Evergrande Group, has agreed to compensate Evergrande's minority shareholders with a total of 1 billion HKD (4 billion NTD).
The Hong Kong Securities and Futures Commission (SFC) announced yesterday that it had reached an agreement with PricewaterhouseCoopers Hong Kong (PwC HK), in which the latter agreed to set aside 1 billion HKD to compensate eligible independent minority shareholders of Evergrande.
The SFC stated that PwC HK had audited Evergrande's financial statements for the 2019 and 2020 financial years, and the SFC found that Evergrande had significantly overstated its revenue and profits for these two financial years.
The SFC reviewed the role played by PwC HK in the incident and concluded that market misconduct had occurred due to Evergrande disseminating false and misleading financial information, as well as the auditor seriously breaching its professional duties.
The SFC pointed out that under the reached agreement, the SFC and PwC HK agreed that the matter would be fully and finally resolved without any admission of legal liability, and the SFC would take no further action against PwC HK, provided that PwC HK fulfills the terms of the agreement.
According to the announcement, PwC HK was Evergrande's auditor for the 2019 and 2020 financial years, while PricewaterhouseCoopers Zhong Tian LLP assisted PwC HK in auditing Evergrande's financial statements.
A debt crisis erupted in the Chinese real estate market a few years ago, with Evergrande being the first to break out and having the most massive debt; it is currently undergoing liquidation. (Editor: Chu Chien-ling) 1150424
(CNA Reporter Chang Chien, Hong Kong, 24th) PricewaterhouseCoopers Hong Kong (PwC HK), due to misconduct in auditing the Chinese real estate firm Evergrande Group, has agreed to compensate Evergrande's minority shareholders with a total of 1 billion HKD (4 billion NTD).
The Hong Kong Securities and Futures Commission (SFC) announced yesterday that it had reached an agreement with PricewaterhouseCoopers Hong Kong (PwC HK), in which the latter agreed to set aside 1 billion HKD to compensate eligible independent minority shareholders of Evergrande.
The SFC stated that PwC HK had audited Evergrande's financial statements for the 2019 and 2020 financial years, and the SFC found that Evergrande had significantly overstated its revenue and profits for these two financial years.
The SFC reviewed the role played by PwC HK in the incident and concluded that market misconduct had occurred due to Evergrande disseminating false and misleading financial information, as well as the auditor seriously breaching its professional duties.
The SFC pointed out that under the reached agreement, the SFC and PwC HK agreed that the matter would be fully and finally resolved without any admission of legal liability, and the SFC would take no further action against PwC HK, provided that PwC HK fulfills the terms of the agreement.
According to the announcement, PwC HK was Evergrande's auditor for the 2019 and 2020 financial years, while PricewaterhouseCoopers Zhong Tian LLP assisted PwC HK in auditing Evergrande's financial statements.
A debt crisis erupted in the Chinese real estate market a few years ago, with Evergrande being the first to break out and having the most massive debt; it is currently undergoing liquidation. (Editor: Chu Chien-ling) 1150424