New probe launched into Evergrande and PwC

Hong Kong’s accounting watchdog has launched a second probe into Evergrande and PwC. The probe will focus on Evergrande Property Services and a $2bn loan that was arranged by PwC. In July, Evergrande replaced its chief executive and chief financial officer after an internal investigation found they had allowed $2bn in deposits that belonged to the property services unit to be pledged as collateral to lenders. The sum was subsequently seized by banks when the unit did not meet its obligations, wiping out most of the subsidiary’s net cash. The probe puts more pressure on PwC, which repeatedly gave the developer a clean bill of health until it defaulted on its $300bn debts last year. The FT (£)