PwC China has been shunned by more high-profile clients in the country as the Big Four accounting firm braces for penalties related to its audit of distressed property developer Evergrande.China Merchants Bank, a top retail lender, said it planned to change its accounting firm to EY from Deloitte for its 2024 onshore and offshore audit, according to an exchange filing on Monday. The appointment of Deloitte was a reversal of the bank’s decision last September to hire PwC China.

Also this week, China Railway Group, a major government-owned construction conglomerate, changed its 2024 auditor and internal control auditors to Deloitte from PwC, according to another filing. China Railway said this was due to the “company’s existing business status, development needs and overall audit needs”.

The two are the latest to ditch PwC in recent months, as companies take into consideration its uncertain future in China, with a leadership change and potential penalties being imposed by the authorities. Regulators also reiterated last year that state-owned enterprises and listed companies should not typically hire auditors who have suffered significant fines or other punishment within three years.