Auditors of at least 14 Hong Kong-listed Chinese property firms have exited this year, securities filings showed, raising governance concerns about the debt-ridden developers several of whom are yet to publish long-pending financial results, reports Reuters. Embattled developers including Sunac China, Shimao Group and Kaisa Group are among those whose auditors have parted ways in recent months. In many cases, firms outside the Big-Four accounting firms have been roped in as replacements.
The trend, which accelerated earlier this year, has seen auditors, including the world’s top auditing firms PricewaterhouseCoopers (PwC) and Deloitte, resigning from their roles.
It comes as the property sector, which accounts for roughly a quarter of China’s economy, has been beset by multiple headwinds after regulators have clamped down on excessive borrowing since mid-2020.