Market Chatter: Evergrande Liquidation Prompts PwC China Partners to Seek Financial Safeguards

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Yesterday

China Evergrande's (HKG:3333) liquidation has pushed partners at former auditor PricewaterhouseCoopers China to look for ways to secure their own finances due to the legal and regulatory impact of the operation, Bloomberg reported Thursday.

One of PwC's partners has even contemplated divorce to protect their wealth, and others have slashed school budgets, the report said.

The failed property giant claimed "negligence" and "misrepresentation" in PwC's affiliates in Hong Kong and mainland China and are seeking 57 billion yuan in damages, the report said.

The case comes after Hong Kong's Accounting and Financial Reporting Council watchdog claimed PwC's audits reflected "particularly egregious" deficiencies due to inflated profits and liquidity.

(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.)

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