Shein Files For Hong Kong IPO As It Looks To Nudge British Regulators For UK Listing: Report

Singapore-based fast-fashion retailer Shein has reportedly submitted paperwork confidentially for an initial public offering in Hong Kong, aiming to advance its stalled listing plans and apply pressure on U.K. regulators.

Last week, the online retailer privately submitted a draft prospectus to the Hong Kong Exchange (HKEX) and courted the approval of the China Securities Regulatory Commission (CSRC), according to the Financial Times, which cited two sources familiar with the matter.

The report stated that London remains Shein’s preferred exchange due to its more diverse and international investor base, and the fast-fashion retailer’s bosses remain hopeful of a listing on the London Stock Exchange (LSE).

Retail sentiment on Shein was in the ‘neutral’ territory, compared to ‘bullish’ a week ago, according to data from Stocktwits.

Shein’s London IPO push was initiated around 18 months ago, and in March this year, the U.K.’s Financial Conduct Authority (FCA) greenlit the public offering.

However, the IPO has been hindered by regulatory disputes between the U.K. and Chinese authorities, primarily over disclosures related to its supply chain and ties to the Xinjiang region.

The Xinjiang Uyghur Autonomous Region is reportedly home to Uyghur people, and Shein’s supply chain is said to have exposure to this region, which has faced heightened scrutiny over alleged human rights abuses against the indigenous population.

This comes after Shein shelved its U.S. IPO plans. It had filed for an IPO in the U.S. in 2023, which collapsed under bipartisan pressure, as lawmakers raised concerns over its Chinese ties, alleged links to forced labor in Xinjiang, and data privacy risks.

Shein’s U.S. business has also come under pressure following the closure of the “de minimis” exemption and the introduction of sharp tariffs under U.S. President Donald Trump’s trade policies.

The “de minimis” exemption permitted duty-free entry for Chinese e-commerce shipments valued under $800 into the U.S. The retailer can no longer bypass import duties on packages under this particular value and now faces steep levies.

A report in May said that Temu and Shein, which have significantly expanded their business in the U.S. in recent years, have shifted their focus to European markets after the trade turmoil forced them to reconfigure their business.

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