DevelopingShein receives approval for Hong Kong IPO from Chinese regulators
Beijing clears the online retail giant to seek an initial public offering in Hong Kong, after its plans to float in London and New York hit a dead end
Online retail giant Shein Global Holdings has secured approval from the China Securities Regulatory Commission (CSRC) to seek an initial public offering in Hong Kong.
The firm plans to issue up to 341.6 million shares and list on the Hong Kong stock exchange, according to a Friday statement by the CSRC.
Shein previously sought to go public in New York or London, according to earlier media reports, but those attempts have halted amid US and European regulatory scrutiny of the firm’s operations on issues ranging from its supply chain to tax.
The firm reportedly filed for an IPO in the United States confidentially as early as 2023, later switching its attention to London as tensions rose between Beijing and Washington. But a London IPO stalled as regulators received a number of complaints, including from an advocacy group for China’s Uygur population highlighting supply chain issues.
Shein has also faced wider regulatory pressures across Europe as its sales on the continent have soared. In June, French authorities fined the firm 22 million euros (US$25.5 million) for breaching consumer protection laws.
Institutional investors have reportedly been enraged by the company’s postponed IPO plans. Some major shareholders lost patience and privately asked Shein to consider buying back their shares, the South China Morning Post reported in 2024.