The liquidators of China Evergrande have won the right to pursue an $8.5bn negligence claim against Pw C beyond the firm’s Hong Kong and mainland Chinese arms to Pw C International, the global entity at the centre of its network. The case exposes tension in the Big Four’s traditional model: selling global coordination while operating through legally separate national firms. Evergrande defaulted in 2021 with $300bn in liabilities after fraudulently inflating revenue.

Regulators found Pw C auditors in Hong Kong and mainland China failed to meet professional standards. The Hong Kong judge ruled it was "at least arguable" that Pw C International owed Evergrande a duty of care, ordering the case to proceed. This disclosure could give liquidators access to network rules, audit-quality procedures and communications between Pw C International and local firms.

While Pw C International sought to dismiss the claim, the ruling may force the firm to rely on its in-house insurer. A successful claim against Pw C International could reshape how the Big Four network model operates globally.