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PRIVACY
Retail & Consumer

Human rights group threatens FCA with legal action over Shein's potential London IPO

Campaigners from Stop Uyghur Genocide have threatened the Financial Conduct Authority with legal action if it approves Shein's plans to float on the London Stock Exchange

New EU rules could impact Shein and Temu shoppers in º£½ÇÊÓÆµ

The Financial Conduct Authority (FCA) has been threatened with legal action by a human rights group if it approves the plans of Shein, a Chinese-founded online retailer, to float on the London Stock Exchange.

Shein, which is reportedly planning to float in the City later this year, has faced criticism from campaigners and lawmakers over its supply chain practices, as reported by .

The company has previously been accused of using forced labour in some of its third-party manufacturing facilities, including in the Xinjiang region where the Chinese government is alleged to be persecuting the Uyghur Muslim minority.

Stop Uyghur Genocide, which expressed its concerns over Shein’s supply chain to the FCA last June, has now warned the regulator of potential legal action if it allows the company’s flotation plans to proceed.

Lawyers for the campaign group stated in a letter to FCA executives that Shein’s listing would be "irreconcilable with the FCA’s statutory duty of integrity, its principles and standards as well as the protection of investors".

This same group recently submitted a dossier of evidence alleging supply chain abuses to a Select Committee prior to an appearance by Shein’s senior lawyer earlier this month.

The dossier is reported to show "clear, identifiable links between cotton production in the Uyghur region and forced labour". The group also highlighted publicly available evidence which it claims connects Shein’s supply chains to cotton produced in the Uyghur region.

Shein's senior lawyer, Yinan Zhu, faced harsh criticism from MPs at the Select Committee, who accused the retailer of behaviour that "bordered on contempt" after she repeatedly declined to answer questions.