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3w ago

Shein Files Draft Prospectus in Hong Kong to Pressure UK on London Listing

The Chinese-founded retailer seeks to leverage its Hong Kong IPO bid to end a yearlong standoff over Xinjiang supply chain risk disclosures.

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Liam Byrne, chairman of the business and trade select committee, wrote to the regulator raising concerns over Shein’s transparency after a senior executive refused to clarify whether the company’s products contained cotton from Xinjiang

Overview

  • Shein confidentially submitted a draft IPO prospectus to the Hong Kong Stock Exchange and applied for China Securities Regulatory Commission approval last week.
  • The Hong Kong filing aims to hasten its public listing and force the Financial Conduct Authority to accept a CSRC-approved prospectus for its preferred London debut.
  • UK and Chinese regulators remain deadlocked over how to describe Xinjiang-related supply chain risks in the prospectus, blocking a London float.
  • After winning FCA approval for its London prospectus in March, Shein still regards London as central to tapping Western investors.
  • Its on-demand manufacturing model has been criticized for forced labor links and hit by the US’s de minimis tariff removal, shaping its IPO approach.