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UK's FRC weighs letting Chinese auditors use home standards for London listings

Published by Global Banking & Finance Review

Posted on February 16, 2026

1 min read

· Last updated: February 16, 2026

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LONDON, Feb 16 (Reuters) - Britain's Financial Reporting Council said on Monday it was consulting on a proposed amendment that would temporarily permit auditors of China-registered companies listing

UK's FRC weighs letting Chinese auditors use home standards for London listings

Proposed Changes by the FRC

LONDON, Feb 16 (Reuters) - Britain's Financial Reporting Council said on Monday it was consulting on a proposed amendment that would temporarily permit auditors of China-registered companies listing Global Depositary Receipts (GDRs) in London to apply Chinese Standards on Auditing for UK listing purposes.

Impact on Capital Flow

The FRC said the temporary amendment would support the flow of capital, enabling investment and growth.

Support for Investment and Growth

(Reporting by Sam Tabahriti; Writing by Catarina Demony; Editing by William James)

Key Takeaways

  • FRC proposes allowing Chinese auditing standards for UK listings.
  • The amendment targets China-registered companies listing GDRs in London.
  • The change aims to boost capital flow and investment growth.
  • Consultation on the proposal is currently underway.
  • The decision could impact international financial markets.

Frequently Asked Questions

What is the Financial Reporting Council (FRC)?
The Financial Reporting Council (FRC) is the UK's independent regulator responsible for promoting high-quality corporate governance and reporting to foster investment. It oversees the auditing profession and sets standards for accounting and auditing.
What are Global Depositary Receipts (GDRs)?
Global Depositary Receipts (GDRs) are financial instruments that allow investors to buy shares in foreign companies. They represent shares traded on international markets, making it easier for companies to access capital from global investors.
What are Chinese Standards on Auditing?
Chinese Standards on Auditing are the set of guidelines and principles that govern the auditing process in China. They ensure that audits are conducted with integrity and in compliance with local regulations.
What is capital flow?
Capital flow refers to the movement of money for the purpose of investment, trade, or business operations. It can be in the form of foreign direct investment, portfolio investment, or other financial transactions.
What is the impact of auditing on investment growth?
Auditing plays a crucial role in ensuring the accuracy and reliability of financial statements, which builds investor confidence. This confidence can lead to increased investment and growth opportunities for businesses.

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