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the trust crisis faced by pwc is gradually spreading, and more and more institutions are dismissing pwc!

on september 14, four fund companies including huaan, baoying, hui'an and yimi simultaneously issued announcements on the change of accounting firms for their funds. among them, the change of accounting firms of three companies involved all their products, and they completely "broke up" with pricewaterhousecoopers.

china securities journal reporters noted that in addition to mutual fund companies, large financial institutions such as china taiping, china life insurance, bank of china, and china merchants bank have also terminated their contracts with pwc. this year, many financial institutions and listed companies have cancelled their cooperation with pwc.

it is worth noting that on september 13, pwc's official website announced important personnel changes at pwc china. li dan will resign as chairman of china, and he will continue to serve the company as chief partner of pwc zhongtian. hemione hudson, the current global chief risk and regulatory officer, has been appointed chairman of pwc china, and she will transfer to pwc china after completing the necessary procedures.

four funds officially announced on the same day: dismissal!

according to public information, pricewaterhousecoopers was formed by the merger of pricewaterhouse and coopers & lybrand in london, uk in 1998. it is also one of the four largest accounting firms in the world and has a large client base in china. however, this year, pricewaterhousecoopers has been slowly losing these high-quality clients, including public funds.

on september 14, four fund companies including huaan, baoying, hui'an and yimi simultaneously issued announcements on the change of accounting firms for their funds. among them, the change of accounting firms of three companies involved all their products, and they completely "broke up" with pricewaterhousecoopers.

specifically, hui'an fund issued an announcement that from september 13, the accounting firm of more than 60 funds under its umbrella will be changed from pricewaterhousecoopers to rongcheng accounting firm (hereinafter referred to as rongcheng), involving all the company's products.

baoying fund announced that it had changed accounting firms for more than 10 of its funds on september 12. previously, the auditing agency of these funds was pricewaterhousecoopers, but now it has been changed to rongcheng.

yimi fund also announced that all 10 funds under the company will change their law firm from pricewaterhousecoopers to rongcheng starting from september 13.

it is worth mentioning that huaan fund, a leading public fund company, also issued an announcement stating that starting from september 13, the accounting firm of its seven products, including huaan ces hong kong stock connect select 100 etf linkage, huaan csi mainland new energy theme etf launch linkage, and huaan cyclical return hybrid launch, will be changed from pricewaterhousecoopers to kpmg huazhen accounting firm (special general partnership).

earlier on september 2, caitong asset management also announced that it would change the accounting firm of the caitong asset management csi nonferrous metals index from pricewaterhousecoopers to ernst & young hua ming. yinhua fund announced on the same day that it would also change the accounting firm of yinhua csi r&d innovation 100 etf from pricewaterhousecoopers to ernst & young hua ming.

generally speaking, fund companies may change accounting firms periodically based on factors such as audit fees, years of service, and independence requirements. change of appointment is a common phenomenon, but china securities journal reporters noticed that since june, hui'an fund, baoying fund, hongtu innovation fund, csop asset management and others have announced the termination of their contracts with pwc.

in addition to fund companies, listed insurance companies such as china taiping, china insurance, and china life have also announced the termination of pwc. in addition, financial institutions such as bank of china, china merchants bank, haitong securities, and china cinda have also terminated their contracts with pwc. this year, many financial institutions and listed companies have cancelled their cooperation with pwc.

involved in the evergrande real estate case, fined 441 million yuan

this year, pricewaterhousecoopers has been terminated by financial institutions and listed companies many times, which may have a lot to do with the credibility crisis it is facing due to fraud at evergrande real estate group co., ltd. (hereinafter referred to as evergrande real estate).

at the end of may this year, the china securities regulatory commission made a penalty decision on evergrande real estate's fraudulent bond issuance and information disclosure violations, ordering evergrande real estate to make corrections, giving it a warning and imposing a fine of 4.175 billion yuan. at the same time, the china securities regulatory commission also promoted the investigation of related intermediary institutions. among them, the most concerned intermediary institution is pricewaterhousecoopers.

on september 13, the ministry of finance and the china securities regulatory commission successively announced the punishment decision against pricewaterhousecoopers. pricewaterhousecoopers, which was involved in the evergrande real estate case, was confiscated of illegal gains and fined a total of rmb 441 million by the chinese regulatory authorities, and its business was suspended for 6 months and its guangzhou branch was closed; the 11 certified public accountants involved in the case either had their certified public accountant certificates revoked, or were warned or fined.

after being punished, pwc said in a statement issued on the same day that it had fully cooperated with the regulatory authorities' inspections, respected and resolutely obeyed the relevant administrative punishment decisions, and had taken rectification and accountability measures. the punished members of the evergrande real estate audit team have terminated their labor relations with pwc, and the relevant members of the management team are required to assume management responsibilities. pwc china is appointing a new leadership team.

on september 13, pwc network issued a statement on the pwc china evergrande incident. the statement expressed disappointment with pwc zhongtian's audit work on evergrande real estate and announced a series of personnel changes - li dan resigned as pwc china chairman, and pwc global risk and regulatory officer hemione hudson has been appointed as china chairman. wang xiao, the head of pwc china's assurance business, will take a higher position to lead pwc china's audit and assurance business.

in addition, according to multiple media reports, pwc is considering cutting up to half of its financial services audit staff in china. it is also considering cutting about 20% of its staff in other audit teams and non-audit business lines.

under the pressure of client loss and layoffs, it remains to be seen whether pwc china's change of leadership can gain the trust of existing clients and retain them.