UK will let Chinese auditing standards be used for London Stock Connect GDRs

The Financial Reporting Council published revised third country auditor directions on July 15. They apply from 1 September 2026 and replace directions that ran from 1 January 2021. A new direction covers Chinese-registered entities admitted to trading global depositary receipts through the Shanghai and Shenzhen Stock Connect segment of the London Stock Exchange. Those audits may be conducted under Chinese Standards on Auditing. The audit report must disclose that fact, and must state that the FRC has not determined those standards to be equivalent to International Standards on Auditing. The direction covers audit reports signed between 1 September 2026 and 1 September 2028. Registration with the FRC still applies. This brief is drawn from the FRC directions document, which Money & World read directly.