Fast-fashion giant Shein has confidentially filed for an IPO in Hong Kong as its attempts to go public in the US and UK continue to face setbacks. The company submitted a draft prospectus to the Hong Kong Stock Exchange last week and is now seeking approval from China’s securities regulator, the China Securities Regulatory Commission (CSRC), according to a report by the Financial Times.
Goldman Sachs, Morgan Stanley, and JPMorgan are advising on the IPO.
Although Shein moved its headquarters to Singapore, it continues to rely heavily on Chinese manufacturing. The company previously sought to list in the US and then in London, but both efforts have stalled due to political and regulatory hurdles.
Shein Faces Challenges in the US
In the US, Shein filed for an IPO in November 2023, but the process has encountered significant resistance from lawmakers and regulators. The company has been excluded from joining the National Retail Federation and has faced scrutiny in Congress regarding its data practices, ties to China, and labor conditions within its supply chain.
Reports indicate that US officials have raised concerns about Shein’s connections to China’s Xinjiang region, as well as its data collection practices and the potential for Chinese government access. In December, a congressional panel sent Shein a letter requesting more information on its data policies and ties to Beijing. The company has denied allegations of forced labor and insists it complies with US laws. Additionally, Shein has been criticized for exploiting shipping loopholes to bypass import taxes by sending products directly to customers in the US.
With political pressure mounting, sources suggest that a US listing appears increasingly unlikely.
