PwC is bracing for a hammer blow from the Chinese authorities for approving the finances of failed property giant Evergrande, the Financial Times reported.
In Evergrande's 2019 and 2020 financial reports, PwC did not raise any concerns about the financial situation.
PwC is expected to face a fine that will exceed the 2023 fine of 212 million yuan (HK$228.6 million) levied on Deloitte for significant audit deficiencies related to Citic FAMC (2799).
Meanwhile, real estate giant China Vanke (2202) pledged its own logistic arm for a 20 billion yuan syndicated loan, the largest single borrowing to developers in four years, mainland media reported.
The loan is led by China Merchants Bank (3968) and aims to boost Vanke's liquidity.
It has pledged shares in Vanke Logistics Development for the borrowing.
However, Vanke's share price dipped 2.85 percent to HK$6.82.
State-backed Vanke was once China's largest developer but has become the latest flashpoint in the nation's prolonged property crisis, underscoring the severity of the sector's challenges.
It went under close investor scrutiny earlier this year after concerns about its private debt maturities sparked a series of bond selloffs.
Earlier this week, it had withdrawn a smaller loan from Bank of China's branch in Shenzhen city for a development project.
While skepticism remains about the builder's long-term financial health, Vanke's ability to secure new financing has eased concern about an imminent cash.
Additionally, Vanke Overseas Investment (1036) recently underwent personnel changes, with Ching Hiu Yuen being appointed as an independent non-executive director.
