UK Weighs Accepting Chinese Audits to Draw More Stock Listings

The UK’s accounting watchdog is considering temporarily accepting Chinese, rather than UK, audit standards for certain listings in a bid to attract more foreign firms to the London Stock Exchange.

The UK’s Financial Reporting Council asked for public comments Monday on a proposal to let Chinese-registered companies use China’s auditing standards when they offer global depositary receipts in London. GDRs are securities allowing foreign investment into firms listed overseas.

The FRC said the move would be temporary and is designed to encourage more Chinese companies to list in London. Currently, they must follow UK-approved auditing standards to do so.

“This ...