PricewaterhouseCoopers has agreed to pay $166 million to settle a regulatory investigation in Hong Kong related to its audit work for China Evergrande Group, the troubled property developer that became the center of China's real estate crisis.

The settlement resolves the probe by Hong Kong's Financial Reporting Council into PwC's role as Evergrande's auditor. The accounting firm had served as the external auditor for the property giant before the company's financial troubles became apparent.

Evergrande, once China's largest property developer by sales, has been at the center of a broader crisis in China's real estate sector. The company has faced liquidity problems and mounting debt obligations, leading to increased scrutiny of its financial reporting and the auditors who signed off on its accounts.

The $166 million payment represents one of the largest settlements involving an international accounting firm in Hong Kong. The agreement allows PwC to avoid admitting wrongdoing while resolving regulatory concerns about its audit practices.

PwC's settlement comes as regulators worldwide have increased scrutiny of audit firms following high-profile corporate failures. The firm continues to face investigations and potential penalties in other jurisdictions related to its work for various clients during periods of financial distress.