PwC invests in high-quality business expansion in China

16 Sep, 2024

PwC invests in high-quality business expansion in China

PwC is making tangible investments to ensure long-term, high-quality, and sustainable business operations in China. This comes after PwC Zhong Tian LLP, the firm's mainland unit, was fined 441 million yuan ($62 million) and suspended for six months due to its audit of the failed property developer, China Evergrande Group. Chinese regulators have been investigating PwC's role in Evergrande's accounting practices, citing a $78 billion fraud from 2018 to 2020.

In an internal memo to staff, PwC acknowledged the challenging period and emphasized its commitment to remediation and future success. PwC's global risk and regulatory leader, Hemione Hudson, was appointed to replace China territory senior partner Daniel Li, who stepped down due to his previous responsibilities. Hudson assured staff that the firm would continue to invest in their development and maintain high standards.

The memo also stated that the actions of a small group of individuals did not represent the broader work of PwC China's 18,000 professionals. Regulatory investigations are ongoing, including scrutiny of PwC’s Hong Kong unit, which audited the Hong Kong-listed Evergrande. The penalty is seen as a significant step in cross-border law enforcement concerning the Evergrande case.