Hong Kong’s audit watchdog expands probe into embattled China Evergrande’s property services unit
- Hong Kong’s audit regulator will look into 13.4 billion yuan of deposits the subsidiary used to back several loans
- The investigation will also cover the audit work carried out by PwC on the company’s 2020 annual accounts
Hong Kong’s audit regulator has expanded its probe into the property services arm of embattled developer China Evergrande to look into 13.4 billion yuan of deposits the subsidiary used to back several loans, later revealed to have been channelled to its parent.
The investigation will also cover the audit work carried out by PwC on the company’s 2020 annual accounts, the FRC said in a press release issued on Monday. PwC said it does not comment on client matters when asked by the Post about the FRC’s investigation.
“The FRC publicly announces the initiation or extension of the scope of investigations when considered necessary in the circumstances in order to protect the interests of shareholders and the investing public,” it said in the statement Monday.
The announcement is also intended to “maintain public confidence in our financial markets and independent auditor regulation,” it said. The watchdog had previously only announced the results of its investigations.