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Shein’s London IPO Faces Major Setback, Shifts Focus to Hong Kong Listing
Shein’s London IPO Faces Major Setback, Shifts Focus to Hong Kong Listing
30 tháng 5 2025
Fast fashion giant Shein is facing yet another hurdle in its long-awaited initial public offering (IPO) as plans to go public in London have reportedly been blocked by Chinese regulators. According to Reuters, the company is now turning its attention to listing on the Hong Kong Stock Exchange instead.
Why the London IPO Matters — And Why It Failed
Shein’s London IPO was expected to lend the company much-needed international credibility and open the door to a deeper pool of Western investors. However, analysts say the scrutiny surrounding Shein’s business practices made the IPO a controversial prospect from the beginning.
“We’ve always said Hong Kong would be a safer IPO option for Shein,” said Samuel Kerr, Head of Global Equity Capital Markets at Mergermarket, in an interview with CNBC.
“This was always going to be an IPO with baggage — and perhaps it’s better suited to a domestic investor base.”
Mounting Challenges: Labor Allegations and Legal Investigations
Shein has been battling allegations of using forced labor, a claim it denies, and facing increasing global regulatory pressure. The company had already scrapped an earlier plan to list in New York due to pushback from U.S. lawmakers.
More recently, the European Union launched an investigation and found that Shein violated consumer protection laws through:
Fake promotional discounts
High-pressure sales tactics
Misleading sustainability claims
Adding fuel to the fire, the U.S. has now closed its de minimis loophole for low-cost imports — a policy change that could severely impact Shein’s shipping model. The EU and U.K. may soon follow suit.
A Blow to London's IPO Aspirations?
Shein’s exit is seen as a setback for London’s struggling IPO market, which has been trying to attract high-profile listings amid increased competition from global exchanges.
“This will be a blow for London’s ambitions to attract big names,” said Susannah Streeter of Hargreaves Lansdown.
“But given the mounting obstacles, Shein’s decision to pivot isn’t surprising.”
Some experts also cautioned that positioning Shein as the poster child for London’s IPO revival could send the wrong message to investors, given the controversies surrounding the company.
Why Hong Kong Might Be the Better Option
Switching to Hong Kong could allow Shein to avoid comparisons with UK-listed fashion retailers like Asos, Next, and Boohoo — and potentially achieve a higher valuation. According to Bloomberg, Shein was under pressure to lower its London valuation to $30 billion, down from earlier estimates of $50 billion.
“Moving away from London may help Shein achieve a more favorable valuation,” Kerr added.
The listing could also mark a win for Hong Kong, especially as new capital continues to flow into its market from both domestic and overseas investors.
“Shein’s IPO in London or New York would’ve been symbolic,” said Rui Ma, founder of Tech Buzz China.
“But at the end of the day, it’s the quality of listings that define a market — and for now, Shein is a win for Hong Kong, but not a turning point.”
Conclusion
Shein’s London IPO collapse signals the deepening challenges facing Chinese firms trying to list internationally amid geopolitical tension and increased regulatory scrutiny. A shift to Hong Kong may offer Shein temporary relief and a pathway forward — but it also highlights the growing complexity of global capital markets.
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