Shein and the CSRC didn’t instantly reply to a request for remark. A spokesperson for Hong Kong Exchanges and Clearing (HKEX) declined to touch upon particular person corporations.
Earlier than its try and listing in London, Shein had pursued a list in New York, as a part of its efforts to achieve legitimacy as a worldwide, quite than a Chinese language firm, and entry to a large pool of huge Western traders.
A list in Hong Kong would go towards that technique and will harm its international credentials.
Allegations that Shein’s merchandise comprise cotton from China’s Xinjiang area and a deliberate authorized problem to the London IPO by a NGO campaigning towards compelled labour in China have sophisticated the London itemizing and threat embarrassment for the Chinese language authorities, a separate supply with direct information of the matter stated.
Tensions with the US over commerce solely worsen the wariness of Beijing and the CSRC, the supply stated.
The US and NGOs accuse China of human rights abuses within the Xinjiang Uyghur Autonomous Area, the place they are saying Uyghur individuals are compelled to work producing cotton and different items. Beijing has denied any abuses.
Shein, based by China-born entrepreneur Sky Xu, claims to have a zero-tolerance coverage over compelled labour and little one labour in its provide chain. The corporate moved its headquarters from Nanjing, China, to Singapore in 2022.
Because it awaited a response from the CSRC, Shein earlier this month dropped the communications corporations Brunswick and FGS it had employed to assist with public relations forward of the London itemizing.
Shein’s filings with the CSRC make it topic to Beijing’s itemizing guidelines for Chinese language corporations going public offshore, two sources have stated.
The foundations are utilized on “a substance over type” foundation, giving the CSRC discretion on when and tips on how to implement them, they added.
Shein doesn’t personal or function any factories, and as an alternative sources its merchandise from 7,000 third-party suppliers in China, in addition to some factories in different international locations equivalent to Brazil and Turkey.
Shein’s intention was to go public in London within the first half of this yr. However its enterprise mannequin of sending merchandise straight from factories to buyers all over the world has been disrupted by the Trump administration ending duty-free entry and slapping steep tariffs on e-commerce packages from China.
The “de minimis” exemption allowed e-commerce packages from China price lower than $800 to enter the US duty-free and helped Shein, Temu, and Amazon Haul promote garments, devices and equipment extraordinarily cheaply.
Now, these parcels are topic to a minimal tariff of 30%.
No matter the place Shein lists, its eventual IPO valuation will hinge on the impression of the elimination of the de minimis exemption, based on insiders. The US exemption remains to be in place for items that aren’t from China or Hong Kong.
The EU has additionally proposed modifications to its responsibility exemption on parcels beneath €150, including to stress on the enterprise mannequin.
Earlier this yr Shein was set to chop its valuation in a possible London itemizing to about $50bn, almost 1 / 4 lower than the $66bn valuation it had achieved in a $2bn personal fundraising in 2023.
A revival in Hong Kong’s capital market, with sizeable latest listings together with Chinese language electrical car battery big CATL’s $5.3bn float, the world’s largest itemizing this yr, augurs effectively for a possible Shein IPO within the metropolis.
Firms have raised $9.7bn in Hong Kong via IPOs and second listings to this point in 2025, in contrast with $1.05bn on the similar time final yr, based on LSEG information.
Reuters
