"Evergrande involved in financial fraud, penalties from the Hong Kong Securities and Futures Commission and the Financial Services department implemented, PricewaterhouseCoopers responds"

According to the disclosure of the Hong Kong Securities and Futures Commission, a agreement has been reached with Ernst & Young regarding the fraudulent financial statements of China Evergrande Group in 2019 and 2020. The commission has reserved 1 billion Hong Kong dollars to compensate eligible independent minority shareholders of China Evergrande Group. Meanwhile, the Hong Kong Institute of Certified Public Accountants revealed that Ernst & Young has been fined 300 million Hong Kong dollars and given a six-month practice restriction for their audit of Evergrande, and their two former responsible individuals have been fined a total of 10 million Hong Kong dollars. Ernst & Young responded that the business restrictions imposed by the Hong Kong Institute of Certified Public Accountants will not affect their existing clients, and the restrictions only apply to their inability to take on new Hong Kong audit clients in the public interest within six months.