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China Builders Fall as Hopson Stokes Fear of Auditor Exodus

  • Resignation of PricewaterhouseCoopers triggers selling
  • Builders face first audit for earnings since property crisis
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Fresh signs of contagion are rippling through China’s property industry, with a spate of auditor resignations deepening concerns about developers’ financial health in the run-up to earnings season. 

Investors moved to pare risk exposure on Friday after Hopson Development Holdings Ltd. said its auditor PricewaterhouseCoopers resigned after receiving insufficient information to complete auditing procedures. Hopson Development’s dollar bonds were on pace for record declines, while its shares fell the most since 2009. China’s high-yield dollar bonds dropped at least 3 cents on the dollar, according to credit traders.