Shein, the Singapore-headquartered fast-fashion giant, is reportedly pivoting its highly anticipated Initial Public Offering (IPO) from London to Hong Kong.1 This strategic shift comes after the company encountered significant roadblocks in securing the necessary approvals, particularly from Chinese regulators.2
The Roadblocks in London:
Shein had been actively pursuing a listing on the London Stock Exchange for nearly a year, confidentially filing paperwork with the UK’s Financial Conduct Authority (FCA) in June 2024. While the FCA reportedly granted its preliminary approval in March or April 2025, the major hurdle has been the China Securities Regulatory Commission (CSRC).3
- Chinese Regulatory Approval: Despite Shein’s efforts to establish itself as a global company with headquarters in Singapore, its significant reliance on contract manufacturers in China (around 5,800 of them) means it remains subject to Beijing’s offshore listing rules.4 Sources indicate that Shein informed the CSRC shortly after receiving FCA approval, but faced “unexpected delay and limited communication” from the Chinese regulators.5 This silence ultimately prompted the company to reconsider its venue.
- Geopolitical Tensions and Supply Chain Scrutiny: Shein’s IPO prospects, regardless of location, have been shadowed by geopolitical tensions and intense scrutiny over its supply chain practices.6 Allegations of forced labor, particularly concerning cotton sourced from China’s Xinjiang region, have drawn criticism from lawmakers, activists, and human rights organizations.7 A potential legal challenge in the UK by a non-governmental organization specifically on this matter may have further complicated the London listing. While Shein maintains a zero-tolerance policy for forced labor and claims it only sources cotton from approved regions, these concerns have made the listing politically sensitive.8
- US Tariff Changes: Recent changes to US import rules, specifically the removal of the “de minimis” exemption for goods valued under $800 from China and Hong Kong, have impacted Shein’s low-cost business model.9 This change, which imposes tariffs on previously duty-free shipments, directly affects Shein’s profitability in its largest market, the United States. This broader macroeconomic and regulatory environment likely added to the complexity of the London IPO.
- Valuation Concerns: Shein’s valuation has also been a point of contention. While it was valued at $66 billion in a private fundraising round in 2023, reports suggested investors were pressuring it to slash its valuation further for a London listing, with figures as low as $30 billion being floated.10
The Pivot to Hong Kong:
Following the stalled progress in London, Shein is now reportedly preparing to file a draft prospectus with the Hong Kong Stock Exchange in the coming weeks, aiming to go public in the city within the year.11
- Chinese Regulator Familiarity: A listing in Hong Kong, while still requiring CSRC approval, might be perceived as a more straightforward path given its proximity and the CSRC’s existing oversight of Hong Kong listings.
- Revival in Hong Kong’s Capital Market: Hong Kong’s capital market has seen a recent revival, with sizable listings.12 This could present a more favorable environment for Shein’s debut.
Implications of the Shift:
- Departure from Global Brand Strategy: Shein’s previous attempts to list in New York, and then London, were part of a broader strategy to establish itself as a global brand with access to major Western capital markets and a wide pool of international investors. A Hong Kong listing, while practical, could potentially diminish its global credentials and access to Western capital pools, reinforcing its perception as a “Chinese-linked” company.
- Continued Scrutiny: Regardless of the listing venue, Shein will likely continue to face intense scrutiny over its supply chain, labor practices, and environmental impact. Its ability to transparently address these concerns will be crucial for investor confidence and its long-term viability.
Shein’s journey to go public has been a complex saga, reflecting the multifaceted challenges faced by global businesses operating across different regulatory, geopolitical, and ethical landscapes. The move to Hong Kong signifies a pragmatic adaptation to these realities in its pursuit of a public listing.
