U.K. Proposes Easing Audit Rules to Attract Chinese Listings
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The U.K.’s accounting watchdog has proposed easing audit requirements for Chinese companies seeking listings in London, in a bid to lower regulatory barriers and bolster the British capital’s competitiveness as a global financial center.
The Financial Reporting Council (FRC) on Monday released a consultation paper outlining revisions that would allow Chinese firms listing on the London Stock Exchange through the Shanghai-London Stock Connect to use Chinese auditing standards. Under existing rules, those companies must comply with International Standards on Auditing (ISAs).
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- The UK’s FRC proposed allowing Chinese companies listing in London to use Chinese auditing standards to reduce barriers and boost market competitiveness.
- IPO activity in London remains low, with only 23 IPOs in 2023, falling to 18 in 2024 and rebounding to 23 in 2025; companies raised about £2.1 billion in 2025.
- Six Chinese firms have listed in London via the Shanghai-London Stock Connect since 2019; no UK firms have listed in China through the scheme.
- 2019：
- The Shanghai-London Stock Connect was launched.
- 2022：
- 45 companies went public in London.
- 2023：
- 23 companies went public in London, down nearly 49% from 2022.
- 2024：
- IPO listings in London fell to 18 companies.
- 2025：
- IPO listings in London edged back up to 23 companies, raising about 2.1 billion pounds ($2.9 billion).
- Late January 2026：
- British Prime Minister Keir Starmer visited China.
- January 31, 2026：
- China-U.K. Financial Working Group held its first meeting in Beijing; a joint statement was issued after the meeting.
- By 2026：
- Six Chinese companies have listed in London through the Shanghai-London Stock Connect; no British company has listed in Shanghai or Shenzhen.
- February 16, 2026：
- Financial Reporting Council (FRC) released a consultation paper proposing to allow Chinese firms listing in London via the Shanghai-London Stock Connect to use Chinese auditing standards.
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