From London to Hong Kong: Shein’s Pivot Highlights IPO Challenges Abroad

Fast fashion giant Shein has confidentially filed for an initial public offering (IPO) on the Hong Kong Stock Exchange (HKEX) in a move widely seen as an attempt to pressure U.K. regulators and revive its long-stalled listing ambitions, according to a report by the Financial Times.

Sources familiar with the matter said the Singapore-headquartered, China-founded company submitted a draft prospectus to the HKEX last week and is now seeking approval from the China Securities Regulatory Commission (CSRC).

When contacted, HKEX declined to comment on individual companies. The U.K.’s Financial Conduct Authority (FCA) and the London Stock Exchange also did not respond to inquiries, while the CSRC has yet to make an official statement.

Hurdles in London, New Hopes in Hong Kong

Shein had previously filed for a London listing about 18 months ago. However, the approval process stalled amid regulatory disagreements between U.K. and Chinese authorities — particularly concerning the “risk factors” section in the company’s prospectus.

At the heart of the dispute is Shein’s supply chain exposure to China’s Xinjiang region, which has drawn global scrutiny over allegations of human rights violations against the Uyghur population. The Chinese government has denied such allegations.

While the FCA approved a version of Shein’s prospectus earlier this year, the CSRC rejected it due to stricter regulations on how companies describe risks related to doing business in China.

Can Shein Revive the U.K.’s IPO Market?

A successful London IPO had been viewed as a milestone for Shein — now nearly 17 years old — offering global legitimacy and access to a deep pool of Western investors. It was also expected to provide a much-needed boost to the U.K.'s sluggish IPO market, which has seen a wave of delistings and market exits.

Samuel Kerr, Global Head of Equity Capital Markets at Mergermarket, told CNBC that Shein’s continued interest in London reflects a vote of confidence in the British market.

“This goes some way to reversing the negative narrative around London’s decline,” he said via email.

Still, analysts remain skeptical that Chinese approval will influence the FCA’s decision-making.
Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown, noted:

“Even if Chinese authorities approve the filing, the FCA must still follow its own processes — and concessions are not guaranteed.”

James Alexander, CEO of the U.K. Sustainable Investment and Finance Association, echoed the sentiment, emphasizing that “London must uphold strong governance standards, and any erosion would harm investor confidence.”

ESG Pressures and Regulatory Scrutiny Mount

Shein previously abandoned a U.S. IPO plan due to opposition from lawmakers concerned about transparency and labor practices. But according to Streeter, pressure from global investors could still drive meaningful change within the company:

“ESG laggards carry high risks, but also potential upside if they transform. An IPO could make Shein more accountable and transparent, giving shareholders a voice to push for better standards.”

In addition, Shein faces mounting regulatory challenges in Europe. A recent EU investigation found the company violated consumer protection laws, citing practices such as fake discounts, high-pressure sales tactics, and misleading sustainability claims.

To complicate matters further, the closure of the U.S. de minimis tariff loophole — and potential similar actions by the EU and U.K. — may place further strain on Shein’s low-cost business model.