Chinese-founded Shein’s labour practices face scrutiny ahead of possible London listing

Senior British lawmakers, including the chairs of three parliamentary committees, have questioned fast-fashion giant Shein’s suitability for a London stock market listing and called for greater scrutiny of the Chinese-founded firm.

Shein is stepping up preparations for a London listing after its attempt to float in New York faced regulatory hurdles and resistance from US lawmakers.

The firm, known for its US$10 tops and US$5 biker shorts, faced criticism from US lawmakers over alleged labour malpractices, lawsuits from competitors, and use of an import tax exemption.

British Finance Minister Jeremy Hunt held talks with Shein’s Executive Chairman Donald Tang in February and the firm is keen to list in London, a UK government source told Reuters.

Britain is keen to attract more listings after losing out on some big-name flotations to other financial centres.

However, Alicia Kearns, the Conservative chair of parliament’s Foreign Affairs Committee, said Shein should not be permitted to list in London.