PwC defections continue as China Cinda Asset Management ditches auditor facing fines for alleged Evergrande malpractice
- State-owned China Cinda Asset Management has become the latest major company to terminate its contract with PwC
- The Ministry of Finance is considering fining PwC at least 1 billion yuan for alleged auditing malpractices involving China Evergrande
China Cinda has replaced PwC’s services with those of fellow “big four” accounting firm Ernst & Young (EY) for 2024, the asset manager said in a stock exchange filing on Monday.
The decision was made to “practice sound corporate governance and further improve the quality of external audit work,” and in accordance with “relevant requirements of the selection and engagement of accounting firms by state-owned enterprises,” China Cinda said, adding that details of EY’s appointment will be published to shareholders in due course.
PwC has not yet replied to the Post’s request for comment.
China Cinda’s announcement came less than a week after Shenzhen-listed China Merchants Port Group withdrew its proposal to hire PwC as its auditor for the year, following similar moves by corporate giants such as China Merchants Bank, China Railway Group, and Mindray Bio-Medical Electronics.
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