UK to Relax Listing Rules, Allow Chinese Accounting Standards to Attract Listings

The UK government plans to amend stock market listing rules to permit Chinese accounting standards, aiming to lure Chinese companies to the London Stock Exchange and bolster economic growth. Legislation is being drafted to formalize the changes, which would apply to Chinese-registered issuers listing global depositary receipts (GDRs) via the UK-China Stock Connect. The Financial Reporting Council (FRC) is consulting on a temporary policy adjustment, with permanent recognition of Chinese standards pending parliamentary approval. Critics warn of risks related to audit quality and human rights concerns, citing past accounting scandals involving Chinese firms in US markets. The move follows London's recent struggles to attract overseas listings, including Shein's decision to list in Hong Kong last year. Treasury officials assert the reforms will enhance London's competitiveness while maintaining investor protections.