Core Viewpoint - The UK Financial Reporting Council (FRC) proposed a policy revision allowing Chinese companies listed on the London Stock Exchange through the "Shanghai-London Stock Connect" to use Chinese Accounting Standards (CSAs) instead of International Accounting Standards (ISAs) for their financial reports, addressing barriers faced by Chinese issuers in choosing the UK as a listing location [1] Group 1 - The FRC published a consultation document on February 16, 2026, regarding the proposed policy change [1] - The revision is in response to requests from the UK government [1] - The aim is to facilitate the listing process for Chinese companies in the UK [1]

Group 1 - London is actively seeking to attract more Chinese companies to list on its stock exchange due to a shrinking stock market and trading stagnation across Europe [2] - The chairman of the City of London Corporation, Chris Hayward, emphasized the need for more IPOs in London and highlighted the opportunities for Chinese firms to gain clients and financing in the UK [2] - The stock market connectivity mechanism between China and the UK, initiated in 2019, has seen limited participation, with only a few Chinese companies, including Huatai Securities, raising a total of $6.6 billion in London [2][3] Group 2 - Hong Kong's stock market has seen significant activity, with total financing from new stock issuances exceeding $27 billion by early June, marking the highest level since 2021 [3] - In contrast, the London Stock Exchange has only had four IPOs this year, attributed to lower valuations compared to other global markets [3] - London is also collaborating with the People's Bank of China to promote the internationalization of the renminbi, establishing a working group in 2018 to oversee the renminbi market in London [4]