Shein’s IPO Plans Switch to Hong Kong as London Stalls – Reuters

Shein is now preparing to list in Hong Kong after its planned London initial public offering (IPO) failed to gain approval from Chinese regulators, according to a report from Reuters.

The fast-fashion giant, originally founded in China and now headquartered in Singapore, reportedly intends to file a draft prospectus with Hong Kong’s stock exchange in the coming weeks and is aiming to go public in the city within the year, Reuters reported, citing unnamed sources.

Despite receiving the green light from Britain’s Financial Conduct Authority earlier this year, Shein had yet to secure approval from the China Securities Regulatory Commission (CSRC), Reuters said. 

The delay and limited communication from the CSRC prompted the company to reconsider its listing venue.

Shein’s previous efforts to list in New York were also thwarted. 

A Hong Kong listing would mark a shift away from Shein’s strategy of establishing itself as a global brand with access to major Western capital markets.

A source told Reuters that concerns over forced labour allegations related to Xinjiang cotton and a potential legal challenge in the UK by a non-governmental organisation regarding the matter may have complicated the London listing.

While Shein has denied any labour violations and claims a zero-tolerance policy, Reuters noted that geopolitical tensions and regulatory scrutiny continue to impact its IPO prospects.

Reuters added that it was unable to confirm if Shein had sought or received approval from the CSRC for a Hong Kong listing.