Statement from PwC Hong Kong

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PwC Hong Kong concludes regulatory matters in relation to Evergrande 2019-2020 audits with no impact to any existing clients 

Hong Kong, 23 April 2026—Following the conclusion of regulatory investigations in Hong Kong concerning the 2019-2020 China Evergrande Group (Evergrande) audits, PwC Hong Kong has received sanctions from the Accounting and Financial Reporting Council (AFRC). PwC Hong Kong has also reached a settlement with the Securities and Futures Commission (SFC), without admission of liability or agreeing with their conclusions. 

These Hong Kong regulatory actions relate to the same matter that was previously the subject of sanctions in 2024 by the Ministry of Finance and China Securities Regulatory Commission in the Chinese mainland, where the relevant audits were conducted.  

We acknowledge that the work on the Evergrande audits fell well below our high expectations and the expectations of our stakeholders. Resolving these regulatory matters is an important step for the firm and we are pleased to be able to put them behind us.  

PwC China has taken decisive accountability and remediation measures and also implemented a thorough programme over the last two years that has strengthened culture, quality, and governance. This included appointing new leadership and closing the relevant audit branch.  

The AFRC’s practice limitation will have no impact on any of the firm’s existing clients and only relates to the firm’s acceptance of new Hong Kong Public Interest Entity (PIE) audit clients for a period of six months.  

Hemione Hudson, Chair and CEO of PwC China, said:

“The outcomes reached with the AFRC and SFC conclude regulatory matters related to the Evergrande audits from over five years ago with no impact for our existing clients.

We resolved these matters with the best interests of our clients and other stakeholders in mind. We are moving forward with a clear focus on delivering the highest quality services to our clients and supporting the capital markets, as we have done for over 120 years.”  
 

Notes to editor:

PwC China is a construct referring to the collaboration of PwC network entities in the Chinese Mainland, Hong Kong SAR, and Macau SAR.