Key facts
- The U.K. will allow eligible Chinese companies listed in London to use Chinese auditing standards for two years.
- The exemption takes effect on September 1.
- This change aims to attract more international investment and boost London's IPO market.
- Chinese issuers will bypass International Standards on Auditing.
- Auditors must disclose the use of Chinese standards and note they are not equivalent to international ones.
The U.K. is set to ease audit requirements for Chinese companies seeking to list in London, a move designed to attract more international investment and combat a slump in initial public offerings (IPOs). Starting September 1, eligible Chinese firms issuing global depositary receipts on the London Stock Exchange's Stock Connect will be permitted to use their home country's auditing standards for a period of two years, bypassing the need to adhere to International Standards on Auditing (ISAs).