Hong Kong's Securities and Futures Commission (SFC) will move forward with a HK$1 billion compensation plan for China Evergrande's (HKG:3333) minority shareholders, Bloomberg reported Wednesday, citing a spokesperson.

The SFC had obtained a commitment from PricewaterhouseCoopers' (PwC) Hong Kong affiliate to set aside the funds for the restitution process in April, the report said.

The regulator is pursuing the plan despite the indebted property developer's court-appointed liquidators seeking a judicial review of the deal, according to the report.

The liquidators, who believe the shareholders will not receive the compensation, are reportedly also claiming the SFC lacks the statutory authority to enter into an arrangement with a non-regulated party such as PwC's Hong Kong affiliate.

The liquidators are also seeking 57 billion yuan in damages from PwC International and its Hong Kong and China affiliates over alleged negligent auditing and misrepresentation linked to Evergrande, Bloomberg reported.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)