PwC loses major client Bank of China amid regulatory probe
Aug 19th, 23:27:01
By Julie Zhu
HONG KONG (Reuters) - Auditor PwC has lost its largest mainland China-listed client, Bank of China, to rival EY, adding to an exodus of clientele amid a regulatory investigation into its work on troubled property developer China Evergrande Group.
State-owned Bank of China had as recently as March stated plans to reappoint PwC as its auditor for 2024 but in a filing late on Monday said it plans to appoint EY. The decision will be submitted for shareholder approval, it said.
PwC, once the leading auditing firm in China, declined to comment.
Bank of China paid PwC 193 million yuan ($27 million) in auditing fees last year, filings show. That's more than the combined auditing fees from its three next biggest domestically listed clients for 2023: China Life Insurance, China Telecom and insurance giant PICC. The trio have also dropped PwC as a client, according to filings.
At least 50 Chinese firms, many of which are state-owned enterprises or financial institutions, have either dropped PwC as their auditor or cancelled plans to hire the firm in recent months, a Reuters examination of filings shows.
https://app.piqsuite.com/reuters/pwc-loses-major-client-bank-of-china-amid-regulatory-probe