Shein switches IPO focus to Hong Kong rather than London

Shein’s focus on Hong Kong follows a failure to win approval for a London IPO from Chinese regulators, Reuters has reported.

Shein intends to file a draft prospectus with Hong Kong’s stock exchange in the coming weeks and a listing would follow within the year, sources told the news organisation.

Shein was founded in China and concerns about its connections to the country have been among the factors that have made an IPO elsewhere, particularly the US, problematic amid cooling international relations. Shein has also been dogged by controversies over its supply chain and supplier labour conditions.

Shein, which was valued at as much as $66bn two years ago, had won approval to list in London, but that was dependent on agreement from the China Securities Regulatory Commission, where the plan has hit unanticipated delays.

The prospect of a Shein float has also been affected by trade war fears between the US and China following the election of President Donald Trump.

The US authorities have ended de minimis rules under which companies could previously import products valued at less than $800 without having to pay tax. The uncertainty over international trading rules has also hit Shein’s rival Temu.