UK to ease audit rules to attract Chinese companies to its stock exchange
The UK’s Financial Reporting Council (FRC) is consulting on a temporary amendment to relax audit requirements for Chinese companies. This amendment will allow auditors of firms registered in China and listing global depositary receipts (GDRs) in London to apply Chinese accounting standards for UK listing purposes.
Source FRC
The consultations have been initiated at the request of the government, coming just weeks after Prime Minister Keir Starmer’s visit to Beijing. According to the FRC, this temporary change aims to support capital inflows that encourage investment and economic growth.
This move could enhance the participation of Chinese companies in the UK market, strengthening financial ties between the UK and China.
