China bans PwC : China has imposed a six-month ban on accounting firm PwC, which was involved in the audit of the collapsed real estate company Evergrande, and also imposed a fine of more than 400 million yuan ($56.4 million). This is the toughest action so far against any international accounting firm working in China.

PwC fined 116 million yuan.

According to this directive, PwC will be barred from signing the financial results of any company in China for six months. This directive is a big blow for the audit company which is already losing its clients. China's Finance Ministry said in a statement on Friday that it is suspending PwC from business for six months along with fining it 116 million yuan (16.3 million dollars) and confiscating its illegal profits. The ministry has also issued an administrative warning along with canceling PwC's Guangzhou branch.

The Chinese government had started an investigation

China's market regulator has also imposed a total fine and seizure of 325 million yuan ($45.8 million) on PwC for failing to take proper steps in auditing Evergrande. The Chinese government had launched an investigation against PwC, the firm that audited it, after the world's most indebted real estate company Evergrande collapsed in January.

Evergrande had overstated its revenue by nearly $80 billion in 2019 and 2020

The China Securities Regulatory Commission said in March that Evergrande had overstated its revenue by about $80 billion in 2019 and 2020. In May, authorities fined the company $577 million. PwC, one of the world's leading accounting firms, had audited Evergrande's accounts for 14 years and described it as healthy. China has been cracking down on excessive borrowing by real estate companies during a prolonged sluggishness in the real estate market.