FRC Proposes Temporary Audit Standards for Chinese GDRs

The Financial Reporting Council (FRC) is considering a temporary amendment allowing auditors of China-registered companies issuing Global Depositary Receipts (GDRs) in London to use Chinese Auditing Standards. This change aims to maintain investment flow and support growth in the UK financial market.

Britain's Financial Reporting Council announced on Monday its plan to consult on a temporary amendment. This amendment would allow auditors of China-registered companies that list Global Depositary Receipts in London to employ Chinese Standards on Auditing for UK listing procedures.

The FRC emphasized that this temporary measure is designed to facilitate the continuous flow of capital, thereby promoting investment and economic growth.

The move highlights the UK financial authorities' flexibility in accommodating international auditing standards to bolster the investment climate and confidence in the market.

(With inputs from agencies.)