Fast-fashion giant Shein is seeking the approval of China’s regulator to go public in the US, according to reports.
Sources close to the situation said a UK stock market float could be delayed depending on the decision made by the regulator in Beijing, Reuters has reported.
A delay is expected to come as a result of “tougher than expected scrutiny” from US regulators in the nation’s election year, as well as a “lengthy approval process” including several Chinese regulators.
Shein’s intention to list on the New York Stock Exchange was first reported last November, following months of speculation.
Sources said Shein filed with the China Securities Regulatory Commission for the US float, which makes it “subject to Beijing’s new listing rules for Chinese firms going public offshore”.
The new rules, which set out how Chinese companies are allowed to list outside mainland China, could mean requiring approval from “several domestic government agencies” and are expected to complicate the process for Shein and other Chinese retailers.
Shein was founded by Chinese billionaire Chris Xu in 2008 and is backed by investors including Abu Dhabi sovereign wealth fund Mubadala, venture capital group Sequoia Capital China and private equity group General Atlantic.
Shein did not provide a comment.