EY, KPMG benefit most from PwC China’s regulatory problems


A Reuters calculation based on filings showed more than 40 Chinese firms have either dropped PwC as their auditor or cancelled plans to hire the firm in recent months. — Reuters

HONG KONG: Ernst & Young (EY) and KPMG have snapped up over half of PwC’s corporate clients in China that have fled the market’s leading accounting firm as it faces a regulatory probe, filings show.

Chinese authorities have been investigating PwC’s role in auditing China Evergrande Group, after the securities regulator accused the troubled property developer in March of a US$78bil fraud. PwC audited Evergrande for almost 14 years until early 2023.

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