Country Garden Drops PwC Amid Deepening Property Crisis in China
China’s Property Crisis Intensifies with Country Garden's PwC Departure
In a shocking turn of events, Country Garden has officially recommended the resignation of PricewaterhouseCoopers (PwC) as its auditor. This decision marks a significant setback for the beleaguered firm amid the ongoing property crisis in China, creating an upheaval in investor confidence.
Financial Woes Mount for Country Garden
- Contracted sales plunged 57% in August, totaling only 3.43 billion yuan (US$483.8 million).
- The developer has postponed coupon and principal installment payments, citing a lack of funds.
- Facing a liquidation petition from Kingboard Holdings for non-payment of a US$205 million loan.
This comes as PwC looks to navigate the aftermath of the financial scandal tied to China Evergrande Group, which inflated sales figures. The firm is also preparing for potential significant penalties for its role, possibly facing a fine up to 500 million yuan.
The Broader Implications for China's Real Estate Sector
Despite government measures to restore confidence in the market, the property sector continues on a downward trajectory. Sales from the top 100 home builders fell by 26.8% in August, marking a severe challenge in the current economic climate.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.