Hong Kong’s accounting regulator is expanding a probe into China Evergrande financial reporting, following the troubled property developer’s recent disclosure of borrowing arrangements that led to banks seizing $2 billion from a key subsidiary earlier this year.
The city’s Financial Reporting Council said Monday that it has also initiated an investigation into the financial statements of the subsidiary, Evergrande Property Services Group Ltd., and the audit of the unit’s 2020 accounts that was conducted by PricewaterhouseCoopers.