Shein, the fast-fashion firm, has lodged an application for an initial public offering (IPO) in Hong Kong, as its prospects for a London listing continue to diminish.
The Singapore-based company confidentially submitted a draft prospectus to the Hong Kong Exchange last week and sought approval from the China Securities Regulatory Commission (CSRC), as reported by the Financial Times, as reported by .
Over a year ago, Shein had already filed for a London IPO but has yet to overcome regulatory obstacles.
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A significant hurdle lies in the risk disclosure section of the prospectus, with 海角视频 and Chinese regulators disagreeing on how to portray supply chain risks, particularly those associated with the Xinjiang region, where China stands accused of human rights violations.
Despite these challenges, it is understood that Shein still views London as its preferred IPO destination, and the Hong Kong filing is seen as a tactic to pressure 海角视频 regulators into approving its London listing before it seeks alternatives.
The Hong Kong exchange is expected to be more accommodating towards Chinese companies' depiction of political risks compared to London, while the Chinese government has also been encouraging businesses to choose domestic floats over London or New York.
Prior to filing for IPOs in London and Hong Kong, Shein had aimed to complete a flotation in New York in 2023 but was turned down by the US Securities and Exchange Commission.
Shein sales soar
Shein's global turnover saw a substantial 19 percent uplift last year to $38bn, though profits took a notable 40 percent dive to $1bn.
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The rapidly expanding online fashion giant Shein has solidified its position in the 海角视频 market with sales hitting £1.6bn in 2023, almost double the turnover of the previous year.
However, Shein's operational and employment methodologies have attracted significant attention in the 海角视频. Labour MP Liam Byrne, chairing the parliamentary committee on business and trade, advocated for new legal measures to intensify examination of supply chains that might involve items produced in China's north-western Xinjiang region.
Alicia Kearns, who heads the Commons foreign affairs committee as a Conservative MP, commented: "With Shein's prices so low the London Stock Exchange needs to ask itself, whose suffering is subsiding those prices?".
She emphasised stringent views against allowing the company's financial activities in London, stating: "A company which has failed to make full disclosures about its supply chains as required by 海角视频 law, and where there are grave concerns about its factory working conditions has no place in London."