Facing a weak IPO market, the UK will temporarily relax audit rules for Chinese
companies seeking London listings. On July 15 the Financial Reporting Council
issued revised Third Country Auditor (TCA) guidance permitting the use of
Chinese auditing standards for audits issued by Chinese-registered entities
global depository receipts (GDRs) on the London Stock Exchange segment linked to
Shanghai/Shenzhen; the guidance takes effect Sept 1, 2026. The move follows a UK
government request to the FRC to explore temporary TCA changes to remove
barriers to GDR listings while preserving the FRC’s statutory responsibilities
for audit quality and investor protection.
