THE UK's PricewaterhouseCoopers' China unit PwC Zhong Tian has lost two-thirds of its accounting revenues from listed mainland clients this year, reports London's Financial Times.
The loss is blamed on the fallout from its audit of failed property giant Evergrande. The firm has lost at least CNY561 million (US$77 million), out of CNY869 million in 2023 auditing income from Chinese companies listed on mainland exchanges in the past six months, according to China database Wind Info.
Major clients, including state-owned China Life Insurance, which paid an accounting fee of CNY65 million in 2023, and China Railway Group, which paid CNY33 million last year, are among more than 20 mainland-listed companies that have switched firms as PwC braces for a fine in connection with its Evergrande audit.
The exodus shows that even the threat of penalties is reshaping the audit landscape in China. The client losses have been significant enough to force lay-offs and trigger cost-cutting measures in the country.
SeaNews Turkey
The loss is blamed on the fallout from its audit of failed property giant Evergrande. The firm has lost at least CNY561 million (US$77 million), out of CNY869 million in 2023 auditing income from Chinese companies listed on mainland exchanges in the past six months, according to China database Wind Info.
Major clients, including state-owned China Life Insurance, which paid an accounting fee of CNY65 million in 2023, and China Railway Group, which paid CNY33 million last year, are among more than 20 mainland-listed companies that have switched firms as PwC braces for a fine in connection with its Evergrande audit.
The exodus shows that even the threat of penalties is reshaping the audit landscape in China. The client losses have been significant enough to force lay-offs and trigger cost-cutting measures in the country.
SeaNews Turkey
