FINANCE

Hong Kong Regulator Defends HK$1 Billion PwC Settlement Over Evergrande Audits

Published: Sep. 28, 2026 5:43 p.m. GMT+8

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PwC. Photo: VCG

A Hong Kong securities regulator has defended a HK$1 billion ($128 million) settlement with PwC Hong Kong over its audits of China Evergrande Group, saying the arrangement carries risks but is in the public interest.

The Securities and Futures Commission (SFC) agreed in April not to take further action against PwC Hong Kong over Evergrande’s fabricated financial statements for 2019 and 2020, in exchange for the auditor setting aside the funds for the developer’s independent minority shareholders without admitting liability.

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SFC defended HK$1bn ($128M) PwC settlement over Evergrande audits, citing public interest and compensation for small shareholders.
Evergrande liquidators challenged the deal in Hong Kong High Court; ruling expected by Oct 30.
Liquidators separately seek ¥57bn ($8.5B) from PwC over alleged audit failures.

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PwC Hong Kong: PwC Hong Kong reached a HK$1 billion settlement with Hong Kong's SFC over Evergrande audits, without admitting liability, to compensate minority shareholders. Liquidators challenged the deal and separately seek 57 billion yuan from PwC entities. The High Court's ruling on a judicial review is expected by Oct. 30.

China Evergrande Group: China Evergrande Group had fabricated financial statements for 2019 and 2020, audited by PwC Hong Kong. A HK$1 billion settlement was reached with the SFC for minority shareholders. Liquidators separately seek ¥57 billion from PwC for alleged audit failures. The High Court ruling is expected by Oct. 30.

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