Latest news with #EliotFisk
Business Times
a day ago
- Business
- Business Times
Shein's planned Hong Kong listing to benefit from wider capital pool, analysts say
[SYDNEY] Shein's planned listing in Hong Kong will help the online fast-fashion retailer avoid sharp investor scrutiny of its supply chains while tapping into capital from the mainland and emerging market investors, analysts said. The Singapore-headquartered company has turned its public market debut ambitions to Hong Kong after failing to win Chinese securities regulatory approval to proceed with a London initial public offering (IPO), Reuters reported last month, citing sources. While a listing, if successful, would be a big boost for Hong Kong, the move would cast a cloud over the company's efforts in recent years to gain legitimacy as a global, rather than Chinese, company. Shein, which sells products including US$5 bike shorts and US$18 sundresses, has faced political and environmental group pressure in the UK over its cotton sourcing and supply chain practices. It has also faced allegations that its clothes contain cotton from China's Xinjiang region, where the US and NGOs have accused the Chinese government of human rights abuses and forced labour. Beijing denies any abuses. The company, which moved its headquarters from China to Singapore in 2022, has previously said it has a zero-tolerance policy for forced labour and requires its contract manufacturers to only source cotton from approved regions. 'If it is the only option now open to them, the Hong Kong market does make sense as a place where you could list a global business with a mainland supply chain,' said Eliot Fisk, a Hong Kong capital markets consultant and former JPMorgan banker. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Shein did not respond to a Reuters request for comment. Before its attempt to list in London, Shein had pursued a listing in New York. The China-founded company had also faced regulatory hurdles and pushback from US lawmakers in its attempt to list in the US. 'Listing in Hong Kong would also likely dodge the protests and political pushback it might face in the UK,' said Craig Coben, former Bank of America co-head of capital markets in Hong Kong. While it is not known whether Shein plans to seek any waivers for a potential Hong Kong listing, several waivers, including disclosure-related waivers, can be sought by large IPO hopefuls in the Asian financial hub, according to capital market lawyers. A Hong Kong listing would also allow Shein to eventually be added to the city's Stock Connect, scheme which gives easier access for mainland and Hong-Kong-based investors to buy shares on each country's respective markets more easily. Shein would easily meet the market capitalisation and other criteria for inclusion in the connect scheme and for attracting mainland investment, said Hong Kong-based advisory firm Emmer Capital Partners CEO Manishi Raychaudhuri. There was a 255 per cent year-on-year increase in average daily turnover in the first three months of the year in Southbound trading – mainland investors buying and selling Hong Kong stocks – the Hong Kong Exchange said in its first quarter results. 'Hong Kong would have a dominant presence of Asia and emerging market-focused investors. London on the other hand, would have a significant presence of global and developed market investors,' Raychaudhuri said. 'The supply chain issues would have been a more important consideration for the latter set of investors.' REUTERS
Fashion Network
a day ago
- Business
- Fashion Network
Shein targets Hong Kong listing to tap wider investor base
Shein, which sells products such as $5 bike shorts and $18 sundresses, has faced political and environmental criticism in the UK over its cotton sourcing and supply chain practices. The company has also faced allegations that its products contain cotton from China's Xinjiang region, where the U.S. and human rights groups have accused the Chinese government of forced labor and other abuses. Beijing denies any wrongdoing. Shein, which relocated its headquarters from China to Singapore in 2022, maintains that it enforces a zero-tolerance policy for forced labor and requires its contract manufacturers to source cotton only from approved regions. "If this is the only option now open to them, the Hong Kong market makes sense as a place to list a global business with a mainland supply chain," said Eliot Fisk, a Hong Kong capital markets consultant and former JPMorgan banker. Shein did not respond to a Reuters request for comment. Before pursuing a London listing, Shein had also explored listing in New York. The China-founded company encountered regulatory hurdles and political opposition from U.S. lawmakers in its attempt to list in the United States. "Listing in Hong Kong would also help Shein avoid the protests and political pushback it might face in the UK," said Craig Coben, former Bank of America co-head of capital markets in Hong Kong. It remains unclear whether Shein will seek any waivers for a potential Hong Kong listing. According to capital markets lawyers, several waivers— including those related to disclosure— are available to large IPO candidates in Hong Kong. A Hong Kong listing would also position Shein for eventual inclusion in the city's Stock Connect program, facilitating cross-border share trading between mainland China and Hong Kong investors. Shein would easily meet the market capitalization and other criteria required for Stock Connect inclusion and attracting mainland investment, according to Manishi Raychaudhuri, CEO of Hong Kong-based advisory firm Emmer Capital Partners. The Hong Kong Exchange reported a 255% year-on-year increase in average daily turnover in Southbound trading— mainland investors buying and selling Hong Kong stocks— in the first quarter of this year. "Hong Kong would attract a dominant base of Asia- and emerging market-focused investors. London, by contrast, would draw a larger share of global and developed market investors," Raychaudhuri said. "Supply chain issues would have carried more weight with the latter group."
Fashion Network
a day ago
- Business
- Fashion Network
Shein targets Hong Kong listing to tap wider investor base
Shein, which sells products such as $5 bike shorts and $18 sundresses, has faced political and environmental criticism in the UK over its cotton sourcing and supply chain practices. The company has also faced allegations that its products contain cotton from China's Xinjiang region, where the U.S. and human rights groups have accused the Chinese government of forced labor and other abuses. Beijing denies any wrongdoing. Shein, which relocated its headquarters from China to Singapore in 2022, maintains that it enforces a zero-tolerance policy for forced labor and requires its contract manufacturers to source cotton only from approved regions. "If this is the only option now open to them, the Hong Kong market makes sense as a place to list a global business with a mainland supply chain," said Eliot Fisk, a Hong Kong capital markets consultant and former JPMorgan banker. Shein did not respond to a Reuters request for comment. Before pursuing a London listing, Shein had also explored listing in New York. The China-founded company encountered regulatory hurdles and political opposition from U.S. lawmakers in its attempt to list in the United States. "Listing in Hong Kong would also help Shein avoid the protests and political pushback it might face in the UK," said Craig Coben, former Bank of America co-head of capital markets in Hong Kong. It remains unclear whether Shein will seek any waivers for a potential Hong Kong listing. According to capital markets lawyers, several waivers— including those related to disclosure— are available to large IPO candidates in Hong Kong. A Hong Kong listing would also position Shein for eventual inclusion in the city's Stock Connect program, facilitating cross-border share trading between mainland China and Hong Kong investors. Shein would easily meet the market capitalization and other criteria required for Stock Connect inclusion and attracting mainland investment, according to Manishi Raychaudhuri, CEO of Hong Kong-based advisory firm Emmer Capital Partners. The Hong Kong Exchange reported a 255% year-on-year increase in average daily turnover in Southbound trading— mainland investors buying and selling Hong Kong stocks— in the first quarter of this year. "Hong Kong would attract a dominant base of Asia- and emerging market-focused investors. London, by contrast, would draw a larger share of global and developed market investors," Raychaudhuri said. "Supply chain issues would have carried more weight with the latter group."
Fashion Network
a day ago
- Business
- Fashion Network
Shein targets Hong Kong listing to tap wider investor base
Shein, which sells products such as $5 bike shorts and $18 sundresses, has faced political and environmental criticism in the UK over its cotton sourcing and supply chain practices. The company has also faced allegations that its products contain cotton from China's Xinjiang region, where the U.S. and human rights groups have accused the Chinese government of forced labor and other abuses. Beijing denies any wrongdoing. Shein, which relocated its headquarters from China to Singapore in 2022, maintains that it enforces a zero-tolerance policy for forced labor and requires its contract manufacturers to source cotton only from approved regions. "If this is the only option now open to them, the Hong Kong market makes sense as a place to list a global business with a mainland supply chain," said Eliot Fisk, a Hong Kong capital markets consultant and former JPMorgan banker. Shein did not respond to a Reuters request for comment. Before pursuing a London listing, Shein had also explored listing in New York. The China-founded company encountered regulatory hurdles and political opposition from U.S. lawmakers in its attempt to list in the United States. "Listing in Hong Kong would also help Shein avoid the protests and political pushback it might face in the UK," said Craig Coben, former Bank of America co-head of capital markets in Hong Kong. It remains unclear whether Shein will seek any waivers for a potential Hong Kong listing. According to capital markets lawyers, several waivers— including those related to disclosure— are available to large IPO candidates in Hong Kong. A Hong Kong listing would also position Shein for eventual inclusion in the city's Stock Connect program, facilitating cross-border share trading between mainland China and Hong Kong investors. Shein would easily meet the market capitalization and other criteria required for Stock Connect inclusion and attracting mainland investment, according to Manishi Raychaudhuri, CEO of Hong Kong-based advisory firm Emmer Capital Partners. The Hong Kong Exchange reported a 255% year-on-year increase in average daily turnover in Southbound trading— mainland investors buying and selling Hong Kong stocks— in the first quarter of this year. "Hong Kong would attract a dominant base of Asia- and emerging market-focused investors. London, by contrast, would draw a larger share of global and developed market investors," Raychaudhuri said. "Supply chain issues would have carried more weight with the latter group."
Asharq Al-Awsat
a day ago
- Business
- Asharq Al-Awsat
Analysts: Shein's Planned Hong Kong Listing to Benefit from Wider Capital Pool
Shein's planned listing in Hong Kong will help the online fast-fashion retailer avoid sharp investor scrutiny of its supply chains while tapping into capital from the mainland and emerging market investors, analysts said. The Singapore-headquartered company has turned its public market debut ambitions to Hong Kong after failing to win Chinese securities regulatory approval to proceed with a London initial public offering, Reuters reported last month, citing sources. While a listing, if successful, would be a big boost for Hong Kong, the move would cast a cloud over the company's efforts in recent years to gain legitimacy as a global, rather than a Chinese company. Shein, which sells products including $5 bike shorts and $18 sundresses, has faced political and environmental group pressure in the UK over its cotton sourcing and supply chain practices. It has also faced allegations that its clothes contain cotton from China's Xinjiang region, where the US and NGOs have accused the Chinese government of human rights abuses and forced labor. Beijing denies any abuses. The company, which moved its headquarters from China to Singapore in 2022, has previously said it has a zero-tolerance policy for forced labor and requires its contract manufacturers to only source cotton from approved regions. "If it is the only option now open to them, the Hong Kong market does make sense as a place where you could list a global business with a mainland supply chain," said Eliot Fisk, a Hong Kong capital markets consultant and former JPMorgan banker. Shein did not respond to a Reuters request for comment. Before its attempt to list in London, Shein had pursued a listing in New York. The China-founded company had also faced regulatory hurdles and pushback from US lawmakers in its attempt to list in the United States. "Listing in Hong Kong would also likely dodge the protests and political pushback it might face in the UK," said Craig Coben, former Bank of America co-head of capital markets in Hong Kong. While it is not known whether Shein plans to seek any waivers for a potential Hong Kong listing, several waivers, including disclosure-related waivers, can be sought by large IPO hopefuls in the Asian financial hub, according to capital market lawyers. A Hong Kong listing would also allow Shein to eventually be added to the city's Stock Connect scheme which gives easier access for mainland and Hong Kong-based investors to buy shares on each country's respective markets more easily. Shein would easily meet the market capitalization and other criteria for inclusion in the connect scheme and for attracting mainland investment, said Hong Kong-based advisory firm Emmer Capital Partners CEO Manishi Raychaudhuri. There was a 255% year-on-year increase in average daily turnover in the first three months of the year in Southbound trading, mainland investors buying and selling Hong Kong stocks, the Hong Kong Exchange said in its first quarter results. "Hong Kong would have a dominant presence of Asia and emerging market-focused investors. London on the other hand, would have a significant presence of global and developed market investors," Raychaudhuri said. "The supply chain issues would have been a more important consideration for the latter set of investors."
