China urges PwC’s global chair to strictly abide by rules and regulations after Evergrande debacle

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China’s vice-finance minister met PwC’s chief in Beijing following a hefty fine and suspension handed to the firm’s mainland unit over auditing failures at Evergrande

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PwC Zhong Tian, the China unit of the accounting firm, was handed a record fine of 441 million yuan on September 16. Photo: AP Photo

Mia Castagnonein Shanghai

Published: 7:57pm, 30 Sep 2024

China’s vice-finance minister met the global chair of PwC in Beijing, after the accounting firm’s mainland unit was slapped with a hefty fine and suspended for six months, according to a finance ministry statement on Monday.

Vice-Finance Minister Guo Tingting told PwC’s global chair Mohamed Kande during their meeting on September 19 that he hoped the Big Four firm would strictly abide by China’s laws and regulations, and adopt effective measures to correct mistakes, the statement said.

Guo said that Beijing continues to focus on creating a market-oriented, legal and business environment on par with international standards. The minister added that he hoped PwC would be a part of that development and continue to “play an active role in China’s reform and opening up and high-quality development”.

PwC Zhong Tian, the China unit of the accounting firm, was handed a record fine of 441 million yuan (US$62.2 million) on September 16 for its failures in checking the books of bankrupt developer China Evergrande Group.

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PwC Zhong Tian was also banned from operating for six months and the registration of its branch in Guangzhou was revoked, where Evergrande is based.