PwC backs China territory arm with 39;tangible investments39;
New territory head Hemione Hudson works on remedial plan
PwC work for Evergrande in Hong Kong under investigation

HONG KONG, Sept 16 Reuters PwC is making tangible investments to ensure the Big Four firm has high quality and sustainable business in China, it said in a memo to staff after Chinese regulators on Friday hit the company39;s mainland unit with a record penalty.

PwC Zhong Tian LLP was hit with a sixmonth suspension and a fine of 441 million yuan 62 million on Friday over the firm39;s audit of failed property developer China Evergrande Group.

Chinese authorities have been examining PwC39;s role in Evergrande39;s accounting practices since the country39;s securities regulator accused the developer in March of a 78 billion fraud over a period of two years through 2020.

We want to recognize that this has been an extremely challenging period for all of you, said the PwC internal memo issued late on Friday after the regulatory penalty announcement, and reviewed by Reuters.

The PwC network has also shown continued support for our China firm throughout this period… They are making tangible investments to ensure we have long term, high quality and sustainable business in China, it said.

PwC declined to comment.

I know that the coming weeks will not be easy as we put in place a detailed remediation plan and begin to position the business for future success, the firm39;s new China territory head,…