Latest news with #CSRC
Fashion United
a day ago
- Business
- Fashion United
Shein reportedly eyeing Hong Kong listing as London IPO plans halt
Shein is seemingly changing course. The Chinese fast fashion giant is believed to now be looking to Hong Kong for its initial public offering (IPO) after plans to list in London grinded to a halt. According to sources for Reuters, Shein has turned to Hong Kong after it failed to get Chinese regulators to approve of its London Stock Exchange plans. While one source said the e-tailer is planning to file a draft prospectus with the Hong Kong stock exchange in the coming weeks, two other sources suggested Shein is hoping to go public in the region within the year. Shein had been pursuing a listing in the UK since early 2024 after previously looking to New York for its IPO. In the US, it already faced opposition from politicians who had argued to block the filing, calling for better disclosure of Shein's Chinese operations. The company then turned to London as an alternative route, yet was also confronted by similar challenges from local market authorities, NGOs and fashion industry leaders. By April 2025, however, it was reported that the retailer had received approval from the UK's Financial Conduct Authority (FCA) for the London IPO, and thus notified the China Securities Regulatory Commission (CSRC). While Shein had anticipated backing from the CSRC, a source for Reuters said the company experienced an unforeseen delay and limited communication from the organisation. Further factors, like allegations that Shein's products utilised cotton from China's Xinjiang region, had also complicated the London IPO, Reuters noted. FashionUnited has contacted Shein with a request to comment.
CNA
2 days ago
- Business
- CNA
Shein working towards Hong Kong listing after London IPO stalls: Sources
HONG KONG: Shein is working towards a listing in Hong Kong after the online fast-fashion retailer's proposed initial public offering (IPO) in London failed to secure the green light from Chinese regulators, said three sources with knowledge of the matter. The China-founded company aims to file a draft prospectus with Hong Kong's stock exchange in the coming weeks, one of the sources said. Shein plans to go public in the Asian financial hub within the year, two of the sources said. Shein plans to change the listing venue as it has not yet received approval for its London IPO from Chinese regulators, notably the China Securities Regulatory Commission (CSRC), the two sources said. The company, which sells products including US$5 bike shorts and US$18 sundresses, in March secured approval from Britain's Financial Conduct Authority (FCA) for its IPO in London, and soon informed the CSRC, one of the sources said. The company initially expected the green light from Chinese regulators to follow swiftly after the FCA but has since experienced an unexpected delay and limited communication from the CSRC, said the source. Details about Shein's Hong Kong listing plan have not been reported previously. All the sources spoke to Reuters on the condition of anonymity as they were not authorised to speak to the media. Shein and CSRC did not immediately respond to Reuters' request for comment. A spokesperson for Hong Kong Exchanges and Clearing Ltd (HKEX) declined to comment on individual companies. Before its attempt to list in London, Shein had pursued a listing in New York, as part of its efforts to gain legitimacy as a global, rather than a Chinese company, and access to a wide pool of large Western investors. A listing in Hong Kong would go against that strategy and could hurt its global credentials. Allegations that Shein's products contain cotton from China's Xinjiang region and a planned legal challenge to the London IPO by a non-governmental organisation campaigning against forced labour in China have complicated the London listing and risk embarrassment for the Chinese government, a separate source with direct knowledge of the matter said. Tensions with the US over trade only exacerbate the wariness of Beijing and the CSRC, the source said. The US and non-governmental organisations accuse China of human rights abuses in the Xinjiang Uyghur Autonomous Region, where they say Uyghur people are forced to work producing cotton and other goods. Beijing has denied any abuses. Shein, founded by China-born entrepreneur Sky Xu, says it has a zero tolerance policy for forced labour and child labour in its supply chain. The company moved its headquarters from Nanjing, China, to Singapore in 2022. As it awaited a response from the CSRC, Shein earlier this month dropped the communications firms Brunswick and FGS it had hired to help with public relations ahead of the London listing. "MORE TO DO WITH CHINA THAN LONDON" Reuters could not determine if Shein had sought or received a nod from the CSRC for the Hong Kong listing. The company had sought Chinese regulatory approval to go ahead with processes to list in New York and later in London. Shein's filings with the CSRC make it subject to Beijing's listing rules for Chinese firms going public offshore, two sources have said. The rules are applied on "a substance over form" basis, giving the CSRC discretion on when and how to implement them, the sources added. Shein does not own or operate any factories, instead sourcing its products from 7,000 third-party suppliers in China as well as some factories in other countries like Brazil and Türkiye. The company had aimed to go public in London in the first half of this year. "Shein's listing would have been a boost to the market," said Alasdair Steele, corporate partner with law firm CMS. "However, there was never any guarantee that a single large listing would reignite the IPO market." "The Shein news is much more to do with China than London," said Lisa Gordon, chair of investment bank Cavendish and a member of the Capital Markets Industry Taskforce (CMIT) - a group dedicated to the revival of Britain's markets. "The London market is in a very good position." This is not the United Kingdom capital's first major IPO loss this year. In February, Unilever said it had chosen Amsterdam for the main listing of its ice cream business. That follows a string of London-listed companies moving, such as online betting company Flutter. Others, such as Shell, are considering leaving as well. BUSINESS MODEL DISRUPTION Shein's business model of sending products straight from factories to shoppers around the world was disrupted by the Trump administration ending duty-free access and slapping steep tariffs on e-commerce packages from China. The "de minimis" exemption allowed e-commerce packages from China worth less than US$800 to enter the US duty-free and helped Shein, Temu and Amazon Haul sell clothes, gadgets and accessories extremely cheaply. Now, those parcels are subject to a minimum tariff of 30 per cent. Regardless of where Shein lists, its eventual IPO valuation will hinge on the impact of the removal of the de minimis exemption, the sources have said. The US exemption is still in place for goods that are not from China or Hong Kong. The European Union has also proposed changes to its duty exemption on parcels under €150, adding to pressure on the business model. Reuters reported in February that Shein was set to cut its valuation in a potential London listing to around US$50 billion, nearly a quarter less than the US$66 billion valuation it had achieved in a US$2 billion private fundraising in 2023. A revival in Hong Kong's capital market, with sizable recent listings including Chinese electric vehicle battery giant CATL's US$5.3 billion float, the world's largest listing this year, augurs well for a potential Shein IPO in the city. Companies have raised US$9.7 billion in Hong Kong through IPOs and second listings so far in 2025, compared to US$1.05 billion at the same time last year, according to LSEG data.
Straits Times
3 days ago
- Business
- Straits Times
Shein switching to Hong Kong listing after London IPO stalls, sources say
Shein's proposed listing in London failed to secure the green light from Chinese regulators, sources say. PHOTO: REUTERS HONG KONG - Shein is working towards a listing in Hong Kong after the online fast-fashion retailer's proposed initial public offering (IPO) in London failed to secure the green light from Chinese regulators, said three sources with knowledge of the matter. The Singapore-based company aims to file a draft prospectus with Hong Kong's stock exchange in the coming weeks, one of the sources said. Shein plans to go public in the Asian financial hub within the year, two of the sources said. Shein plans to change the listing venue as it had not yet received approval for its London IPO from Chinese regulators, notably the China Securities Regulatory Commission (CSRC), the two sources said. The company in March secured approval from Britain's Financial Conduct Authority (FCA) for its IPO in London, and soon informed the CSRC, one of the sources said. The company initially expected the green light from Chinese regulators to follow swiftly after the FCA but has since experienced an unexpected delay and limited communication from the CSRC, said the source. Before its attempt to list in London, Shein had pursued a listing in New York, as part of its efforts to gain legitimacy as a global, rather than a Chinese company, and access to a wide pool of large Western investors. A listing in Hong Kong would go against that strategy and could hurt its global credentials. Allegations that Shein's products contain cotton from China's Xinjiang region and a planned legal challenge to the London IPO by a non-governmental organisation campaigning against forced labour in China have complicated the London listing and risk embarrassment for the Chinese government, a separate source with direct knowledge of the matter said. Tensions with the United States over trade only exacerbate the wariness of Beijing and the CSRC, the source said. The US and NGOs accuse China of human rights abuses in the Xinjiang Uyghur Autonomous Region, where they say Uyghur people are forced to work producing cotton and other goods. Beijing has denied any abuses. Shein says it has a zero tolerance policy for forced labour and child labour in its supply chain. IPO valuation In 2022, the company moved its headquarters from China to Singapore for regulatory, international expansion, and financial reasons – while keeping its supply chains and warehouses in China. Shein does not own or operate any factories, and instead sources its products from 7,000 third-party suppliers in China as well as some factories in other countries like Brazil and Turkey. But its business model of sending products straight from factories to shoppers around the world has been disrupted by the Trump administration ending duty-free access and slapping steep tariffs on e-commerce packages from China. The 'de minimis' exemption allowed e-commerce packages from China worth less than US$800 to enter the US duty-free and helped Shein, Temu, and Amazon Haul sell clothes, gadgets and accessories extremely cheaply. Now, those parcels are subject to a minimum tariff of 30 per cent. Regardless of where Shein lists, its eventual IPO valuation will hinge on the impact of the removal of the de minimis exemption, the sources have said. The US exemption is still in place for goods that are not from China or Hong Kong. The European Union has also proposed changes to its duty exemption on parcels under 150 euros, adding to pressure on the business model. Reuters reported in February that Shein was set to cut its valuation in a potential London listing to around US$50 billion (S$64.5 billion), nearly a quarter less than the US$66 billion valuation it achieved in a US$2 billion private fundraising in 2023. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Fashion Network
3 days ago
- Business
- Fashion Network
Shein eyes Hong Kong IPO as Chinese regulators stall London plans
According to three sources familiar with the matter, Shein is moving forward with plans to list in Hong Kong after its proposed initial public offering (IPO) in London stalled due to delays in securing Chinese regulatory approval. One source said that the fast-fashion giant China-founded aims to file a draft prospectus with the Hong Kong stock exchange within the coming weeks. Two sources added that Shein is targeting a public debut in the Asian financial hub within the year. The two sources said that the decision to change listing venues stems from the absence of approval from the China Securities Regulatory Commission (CSRC). Shein had already received the green light from the U.K.'s Financial Conduct Authority (FCA) in March and subsequently notified the CSRC, expecting a swift follow-up. However, another source noted that communication from the Chinese regulator has since stalled. These developments, including the company's plans for a Hong Kong IPO, have not been previously reported. All sources requested anonymity due to the sensitivity of the matter and because they were not authorized to speak to the media. Shein and the CSRC did not respond to Reuters' requests for comment. A spokesperson for Hong Kong Exchanges and Clearing Ltd. (HKEX) declined to comment on individual companies. Prior to pursuing a London IPO, Shein had explored listing in New York to bolster its global image and attract large Western investors. The Hong Kong shift marks a departure from that strategy and could potentially weaken Shein's appeal as an international brand. The London listing also faced challenges beyond regulatory delays. A separate source disclosed that accusations surrounding Shein's use of cotton from China's Xinjiang region and a planned legal challenge from an NGO opposing forced labor contributed to growing concerns. These factors risked public backlash and embarrassment for Beijing. The source added that tensions between China and the United States over trade policies have only added to Beijing's caution. Washington and various NGOs have accused China of human rights violations in the Xinjiang Uyghur Autonomous Region, where Uyghurs are allegedly subjected to forced labor. Beijing has repeatedly denied these claims. In response, Shein maintains that it enforces a strict zero-tolerance policy against forced labor and child labor throughout its supply chain. As regulatory approval from the CSRC remained uncertain, Shein terminated its contracts with public relations firms Brunswick and FGS, which were initially hired to support its London IPO campaign, as previously reported by Reuters. IPO valuation Whether Shein has formally requested or received CSRC clearance for its Hong Kong listing remains unclear. The company had previously sought regulatory approval from Beijing for listings in both New York and London. Two sources explained that Shein falls under Beijing's listing requirements for Chinese firms going public overseas. These rules, which are based on the 'substance over form' principle, give the CSRC broad discretion in deciding how and when to apply them. Shein does not own or operate any factories directly. Instead, it sources its products from approximately 7,000 third-party suppliers in China, along with select manufacturers in countries such as Brazil and Turkey. The company had originally intended to complete its London listing in the first half of the year. However, its business model—shipping items directly from factories to customers globally—has faced disruption following U.S. policy changes. During the Trump administration, the United States ended duty-free access for Chinese e-commerce shipments and imposed steep tariffs. Previously, a 'de minimis' exemption allowed packages valued under $800 to enter the U.S. without tariffs, significantly benefiting Shein, Temu, and Amazon Haul. Now, those Chinese parcels face tariffs starting at 30%. While the exemption still applies to goods from countries other than China or Hong Kong, its removal for Chinese-origin shipments has forced companies like Shein to reassess their international strategies. The European Union has also proposed changes to its own duty exemption threshold for parcels under 150 euros, further complicating the company's cost structure. In February, Reuters reported that Shein was prepared to slash its valuation to approximately $50 billion for a potential London IPO—down from the $66 billion valuation reached during a $2 billion private fundraising round in 2023.
Business of Fashion
3 days ago
- Business
- Business of Fashion
Shein Working Towards Hong Kong Listing After London IPO Stalls, Say Sources
Shein is working towards a listing in Hong Kong after the online fast-fashion retailer's proposed initial public offering (IPO) in London failed to secure the green light from Chinese regulators, said three sources with knowledge of the matter. The China-founded company aims to file a draft prospectus with Hong Kong's stock exchange in the coming weeks, one of the sources said. Shein plans to go public in the Asian financial hub within the year, two of the sources said. Shein plans to change the listing venue as it had not yet received approval for its London IPO from Chinese regulators, notably the China Securities Regulatory Commission (CSRC), the two sources said. The company, which sells products including $5 bike shorts and $18 sundresses, in March secured approval from Britain's Financial Conduct Authority (FCA) for its IPO in London, and soon informed the CSRC, one of the sources said. The company initially expected the green light from Chinese regulators to follow swiftly after the FCA but has since experienced an unexpected delay and limited communication from the CSRC, said the source. Details about Shein's Hong Kong listing plan have not been reported previously. All the sources spoke to Reuters on the condition of anonymity as they were not authorised to speak to the media. Shein and CSRC did not immediately respond to Reuters request for comment. A spokesperson for Hong Kong Exchanges and Clearing Ltd (HKEX) declined to comment on individual companies. Before its attempt to list in London, Shein had pursued a listing in New York, as part of its efforts to gain legitimacy as a global, rather than a Chinese company, and access to a wide pool of large Western investors. A listing in Hong Kong would go against that strategy and could hurt its global credentials. Allegations that Shein's products contain cotton from China's Xinjiang region and a planned legal challenge to the London IPO by a non-governmental organisation campaigning against forced labour in China have complicated the London listing and risk embarrassment for the Chinese government, a separate source with direct knowledge of the matter said. Tensions with the US over trade only exacerbate the wariness of Beijing and the CSRC, the source said. The United States and NGOs accuse China of human rights abuses in the Xinjiang Uyghur Autonomous Region, where they say Uyghur people are forced to work producing cotton and other goods. Beijing has denied any abuses. Shein says it has a zero tolerance policy for forced labour and child labour in its supply chain. As it awaited a response from the CSRC, Shein dropped the communications firms Brunswick and FGS it had hired to help with public relations ahead of the London listing, Reuters reported earlier this month. IPO Valuation Reuters could not determine if Shein had sought or received a nod from the CSRC for the Hong Kong listing. The company had sought Chinese regulatory approval for going ahead with processes to list in New York and later in London. Shein's filings with the CSRC makes it subject to Beijing's listing rules for Chinese firms going public offshore, two sources have said. The rules are applied on 'a substance over form' basis, giving the CSRC discretion on when and how to implement them, the sources added. Shein does not own or operate any factories, and instead sources its products from 7,000 third-party suppliers in China as well as some factories in other countries like Brazil and Turkey. Shein's aim was to go public in London in the first half of this year. But its business model of sending products straight from factories to shoppers around the world has been disrupted by the Trump administration ending duty-free access and slapping steep tariffs on e-commerce packages from China. The 'de minimis' exemption allowed e-commerce packages from China worth less than $800 to enter the US duty-free and helped Shein, Temu, and Amazon Haul sell clothes, gadgets and accessories extremely cheaply. Now, those parcels are subject to a minimum tariff of 30 percent. Regardless of where Shein lists, its eventual IPO valuation will hinge on the impact of the removal of the de minimis exemption, the sources have said. The US exemption is still in place for goods that are not from China or Hong Kong. The European Union has also proposed changes to its duty exemption on parcels under 150 euros, adding to pressure on the business model. Reuters reported in February that Shein was set to cut its valuation in a potential London listing to around $50 billion, nearly a quarter less than the $66 billion valuation it achieved in a $2 billion private fundraising in 2023. By Julie Zhu, Hadeel Al Sayegh, Helen Reid, Kane Wu; Editors: Sumeet Chatterjee, Stephen Coates Learn more: EU Warns Shein of Fines in Consumer Protection Probe The EU has ordered Shein to address consumer law breaches within one month or face potential fines.
