PwC to Appoint UK Partner to Oversee Scandal-Hit China Operations

10 Sep, 2024

PwC to Appoint UK Partner to Oversee Scandal-Hit China Operations

PwC is appointing a senior UK partner to oversee its scandal-embroiled China operations amidst the ongoing fallout from its audit of the collapsed property developer, Evergrande. Hemione Hudson, who was a top contender for PwC UK leadership earlier this year, will be leading PwC’s China business. This decision is highly unusual as PwC operates as a network of independent, locally-owned partnerships.

The appointment reflects serious concerns about the crisis at PwC China, which faces potential substantial fines and a six-month operational suspension from Beijing due to audit failures related to Evergrande.

Evergrande, China's largest property developer, was found to have exaggerated its mainland revenues by nearly $80 billion before defaulting in 2021. PwC had audited the mainland operations and the Hong Kong-listed parent company since 2009. Daniel Li, currently leading PwC China, was elected to a four-year term starting July 1, but his future role post-Hudson's installation remains unclear.

PwC has faced significant upheaval and leadership changes recently, reflecting broader challenges within the firm. Hudson, known for her regulatory expertise and previous leadership of PwC UK’s audit division, is expected to bring stability amid this turbulent period.