FINANCE

HKEX Shareholders Back KPMG as Auditor, Ousting PwC After Evergrande Fallout

Published: Apr. 29, 2026 9:44 p.m. GMT+8

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PwC once held more than a 30% share of the Hong Kong market for listed companies with valuations exceeding HK$50 billion. Photo: VCG

Shareholders of Hong Kong Exchanges and Clearing Ltd. (HKEX) on Wednesday overwhelmingly approved a plan to replace PricewaterhouseCoopers (PwC) with KPMG as the exchange operator’s auditor beginning in 2026.

The move highlights the deepening fallout facing PwC’s Hong Kong operations, which has lost a wave of high-profile clients after incurring record regulatory penalties tied to its role in the financial fraud at China Evergrande Group.

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Explore the story in 30 seconds

HKEX shareholders approved replacing PwC with KPMG as auditor from 2026, with 99.66% votes in favor.
PwC incurred HK$1B compensation and HK$300M fine over Evergrande fraud; lost >20 clients like AIA in May-June 2025.
Alibaba, Tencent, Xiaomi retained PwC; May 2026 meetings may see more changes.

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Who’s Who

Hong Kong Exchanges and Clearing Ltd.: HKEX shareholders overwhelmingly approved (99.66% in favor) replacing PwC with KPMG as auditor from 2026, amid PwC's fallout from the Evergrande scandal and regulatory penalties. (32 words)

PricewaterhouseCoopers: PricewaterhouseCoopers (PwC) Hong Kong faces deepening fallout from the Evergrande fraud, with HK$300M fine from regulators, HK$1B compensation fund, and a mainland fine of 441M yuan. HKEX voted 99.66% to replace PwC with KPMG from 2026. PwC lost >20 major clients (e.g., AIA, Li Ning) and regulator contracts, but retains Alibaba, Tencent, Xiaomi. (68 words)

KPMG: HKEX shareholders overwhelmingly approved replacing PwC with KPMG as auditor starting 2026, with 99.66% votes in favor at the annual general meeting. This follows PwC's penalties over the Evergrande scandal.

China Evergrande Group: China Evergrande Group was involved in financial fraud, triggering PwC's audit fallout. PwC Hong Kong must set aside HK$1 billion ($128M) to compensate Evergrande minority shareholders per SFC agreement, plus a HK$300M fine from the Accounting and Financial Reporting Council. Mainland China fined PwC Zhong Tian LLP 441M yuan ($64.6M) in 2024. (62 words)

AIA Group Ltd.: AIA Group Ltd. ended its engagement with PwC Hong Kong between May and June 2025, joining over 20 listed companies switching auditors amid PwC's regulatory penalties from the Evergrande scandal.

Li Ning Co. Ltd.: Li Ning Co. Ltd. ended its engagement with PwC Hong Kong between May and June 2025, as one of over 20 listed companies departing amid regulatory penalties tied to the Evergrande scandal.

Ping An Healthcare and Technology Co. Ltd.: Ping An Healthcare and Technology Co. Ltd. ended its engagement with PwC Hong Kong between May and June 2025, joining over 20 listed companies like AIA Group and Li Ning amid PwC's fallout from the Evergrande scandal.

Alibaba Group Holding Ltd.: Alibaba Group Holding Ltd. retained PwC as its auditor in 2025, despite the firm's client losses amid the Evergrande scandal and regulatory penalties. High switching costs may encourage large tech firms like Alibaba to stay.

Tencent Holdings Ltd.: Tencent Holdings Ltd. retained PwC as its auditor in 2025, despite the firm's losses from the Evergrande scandal. Along with Alibaba and Xiaomi, it stayed amid high switching costs, even as regulators pressured PwC and clients departed. (42 words)

Xiaomi Corp.: Xiaomi Corp. retained PwC as its auditor in 2025, despite widespread client losses by PwC Hong Kong amid the Evergrande scandal and regulatory penalties. (24 words)

Deloitte: In 2025, Hong Kong regulators including the SFC, Insurance Authority, and Mandatory Provident Fund Schemes Authority replaced PwC with Deloitte as their auditor.

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