PwC delays partner payouts in Hong Kong and China

PWC has postponed the exchange payments of the former partners who recently retired in Hong Kong and the mainland of China, Financial times.

This delay comes at a time when the accounting specialization is managed by the financial repercussions of its audit operations for the Evergrande developer.

According to four sources of development, multiple stock partners who have retired in recent months have not received any of the capital he contributed.

Historically, the PWC established about half of the amount within months of the partner’s retirement, with the rest at a later time.

This delay is a deviation from the usual payment schedule and is expected to help maintain money.

There is no indication that the PWC has violated its obligations towards the former partners under the shareholders’ agreement.

The delay coincides with PWC’s efforts to address the financial consequences of Evergrande audits, which have obtained a clean health bill from PWC for more than a decade.

Since Evergrande collapsed, PWC has been fined 441 million yuan ($ 62 million) and has been suspended from work for six months by the Chinese authorities, the main righteousness, which accused the company “hiding or even overlooked” in audits.

PWC stepped as Evergrande references in 2023.

While the ban was lifted, PWC exposed revenue losses as Chinese customers immigrated to competing audit companies.

PWC also faces a possible lawsuit from Evergrande refineries, which may bear great costs, although the exact amount is still not specified.

The retired PWC partner recently stated that the company “needs wide liquidity” amid the current disturbances.

The sources said that the payment delays affect a wide range of partners, and not only the participants in Evergrande audits.

PWC refused to comment on the matter.

In March 2024, Beijing claimed that Evergrande and its founder, Hui Ka Yan, were exaggerated in revenue by about $ 80 billion in 2019 and 2020.

In recent months, at least 66 PWC China partners have left, which represents the largest migration in five years.

Upon leaving, the PWC re -shares at the nominal value, where all the money is paid within 12 months, with the exception of up to $ 200,000 Hong Kong ($ 25,640), which can be blocked for up to 18 months after completion.

The entitled capital can reach approximately 40 % of the final partner’s profits-an important number, albeit essential in their retirement plans.

For the major partners, payment may be exposed to millions of dollars in Hong Kong.

PWC has faced challenges in preserving the main customers in China.

In addition to the embargo, Chinese regulations give the state -owned companies and consisting of the appointment of punishment auditors during the past three years.

Some of the customers at Hong Kong PWC recently decreased.

The China Unit in PWC lost about two -thirds of its accounting revenues from customers listed on the main mainland in the first half of last year, highlighting its repercussions from Evergrande audits.

“PWC’s partner’s partner payments in Hong Kong and China were originally created and published through the International Accounting Bulletin, a brand owned in favor of Globaldata.

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