The U.K. financial regulator is proposing a significant rule change designed to attract more Chinese companies to London's stock market. Under consideration is allowing Chinese-registered companies to follow their home country's accounting standards when listing global depository receipts, potentially simplifying the listing process.

Global depository receipts serve as instruments that allow foreign companies to list shares on exchanges outside their home market. The proposed change addresses a long-standing hurdle for Chinese firms, which currently must reconcile their financial statements with both Chinese accounting rules and international standards before gaining London market access.

This regulatory shift reflects London's competition with other financial centers for international listings. By accommodating Chinese accounting standards, the U.K. aims to position itself as a more attractive destination for Chinese capital while maintaining alignment with international regulatory frameworks.