HONG KONG (AP) — Liquidators of the failed Chinese property developer China Evergrande are seeking 57 billion yuan ($8.4 billion) from accounting firm PwC over its auditing work, a Hong Kong court heard on Monday.The hefty amount was claimed against PwC International, PwC Hong Kong and PwC’s mainland Chinese entity, the court was told. A court decision has not yet been made on the claims.China Evergrande, once one of China’s largest real estate developers, first defaulted in 2021, and with more than $300 billion in liabilities became the world’s most indebted developer. Its downfall triggered a liquidity crunch in China’s property sector, which faced a slump in sales and prices and still has not fully recovered.After a Hong Kong judge ordered China Evergrande’s liquidation in early 2024, its court-appointed liquidators launched legal proceedings against PwC over alleged “negligence” in its work for Evergrande as they attempted to recover what they could for creditors.
Last month, Hong Kong regulators said PwC was paying HK$1.3 billion ($166 million) in fines and compensation over its role in auditing Evergrande’s financial statements before its collapse, as they said there were breaches of professional duties by PwC.
