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The Guardian
28-05-2025
- Business
- The Guardian
Shein turns to Hong Kong for flotation as London attempt stalls, reports say
Shein is reportedly aiming to list on the Hong Kong stock exchange as the online fast-fashion retailer struggles to gain the go-ahead from Chinese regulators for a flotation in London. The company, which was founded in China where the majority of its suppliers are based but now has its headquarters in Singapore, is aiming to file a draft prospectus with Hong Kong's stock exchange in the coming weeks, according to Reuters. It said Shein plans to go public in the Asian financial hub this year, which would scotch hopes of what would have been one of the biggest listings ever to hit the London Stock Exchange. Fears about a change of heart have been rising since it emerged earlier this month that Shein had dropped Brunswick and FGS, two communications companies that were aiding its push for a London listing. Shein, which was valued at $66bn (£48.9bn) in a 2023 fundraising round, filed papers with Britain's markets regulator, the Financial Conduct Authority, almost a year ago and gained the go-ahead last month. However, it also requires approval from the China Securities Regulatory Commission from which it has faced unexpected delays, according to Reuters. The reported change in venue comes amid wider concerns about Shein's planned market listing after the US government closed a loophole that allowed overseas sellers to import parcels of goods worth less than $800 direct to shoppers without paying tax. The company had initially been expected to list with a value of as much as £50bn in the UK but estimates have fallen to as little as half of that amount amid changes to US import rules and planned government action in the EU and UK. Official Chinese data showed its total e-commerce shipping to the US dropped 65% by volume in the first three months of the year but rose by 28% in Europe, as companies such as Shein and Temu were hit by the change and additional US tariffs on Chinese-made goods. While Shein has indicated it may shift production to different countries to help ease the effect on its prices, its low-tax model is facing challenges around the world. The EU also said in February it would join the US in phasing out its exemption on customs duties for low-value parcels. The UK chancellor, Rachel Reeves, is also reviewing the tax regime for imports of low-value goods in an effort to prevent Chinese companies undercutting British retailers by dumping cheap items on online marketplaces. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Meanwhile, in the UK, Shein has faced questions about its links to forced Uyghur labour in the Xinjiang region of China. In January, the company refused to reassure British MPs that its products do not include items produced in Xinjiang, prompting one MP to accuse its representative of 'wilful ignorance'. The advocacy group Stop Uyghur Genocide announced a legal challenge in June last year and sent the FCA a dossier in August alleging that Shein uses cotton from the region. In February, Shein told MPs it had found two cases of child labour at its suppliers, and insisted it took a 'strict zero-tolerance approach' to the issue.
Independent Singapore
05-05-2025
- Business
- Independent Singapore
Singapore-headquartered Shein ends contracts with Brunswick and FGS, signalling delay in London IPO plans
Photo: Depositphotos/DesignerTimi LONDON: Singapore-headquartered Shein has ended its contracts with Brunswick and FGS, two UK communications firms that were supporting its push for an initial public offering (IPO) in London—an indication that the flotation is not going as planned, Reuters reported, citing a source familiar with the matter. According to the source, the contracts with the online fast-fashion retailer ended on April 30 and will not be renewed, as reported first by The Times. Brunswick was handling media relations, while FGS focused on government relations. Shein's business model, which relies on shipping clothes from Chinese factories directly to customers worldwide, is facing increasing challenges due to steep tariffs on Chinese goods imposed by US President Donald Trump. The removal of a duty exemption on low-value e-commerce packages is also straining Shein's operations. Brunswick and FGS declined to comment, while Shein has yet to respond to a comment request. In September last year, the company laid off more than 20 staff at its Singapore office as part of restructuring its global IT research and development centre, amid doubts about its London IPO plans. Last month, Reuters reported that Shein received approval from Britain's financial regulator for its IPO but is still waiting for approval from China's regulator, which is also required to proceed. The company had originally planned to complete the listing in the first half of this year, but sources said Trump's tariffs and China's retaliation are likely to push the IPO to the second half of the year. /TISG Featured image by Depositphotos (for illustration purposes only)
Malay Mail
03-05-2025
- Business
- Malay Mail
Shein drops UK communications firms as Trump tariffs throw London IPO off course
LONDON, May 3 — Online fast-fashion retailer Shein has dropped Brunswick and FGS, two communications firms that were supporting its push for a London initial public offering (IPO), a source familiar with the matter confirmed on Friday, in the latest sign the flotation is not going to plan. Steep tariffs on Chinese goods imposed by US President Donald Trump, along with the removal of a duty exemption on low-value ecommerce packages, are challenging Shein's business model, which relies on shipping clothes from factories in China directly to customers around the world. Brunswick was assisting with media relations while FGS was tasked with government relations, and both of their contracts with Shein ended on April 30 and will not be renewed, the source said. The news was first reported by The Times. Brunswick and FGS both declined to comment. Shein did not immediately reply to a request for comment. Singapore-headquartered Shein has secured approval from Britain's financial regulator for its IPO but is still awaiting the green light from China's regulator which it also needs in order to go ahead, Reuters reported last month. Shein had aimed to complete the listing in the first half of this year, but market turmoil caused by Trump's tariffs and retaliation from China is likely to delay the IPO to the second half, sources have said. — Reuters
Yahoo
02-05-2025
- Business
- Yahoo
Shein drops UK communications firms as Trump tariffs throw London IPO off course
By Helen Reid LONDON (Reuters) -Online fast-fashion retailer Shein has dropped Brunswick and FGS, two communications firms that were supporting its push for a London initial public offering (IPO), a source familiar with the matter confirmed on Friday, in the latest sign the flotation is not going to plan. Steep tariffs on Chinese goods imposed by U.S. President Donald Trump, along with the removal of a duty exemption on low-value ecommerce packages, are challenging Shein's business model, which relies on shipping clothes from factories in China directly to customers around the world. Brunswick was assisting with media relations while FGS was tasked with government relations, and both of their contracts with Shein ended on April 30 and will not be renewed, the source said. The news was first reported by The Times. Brunswick declined to comment. FGS and Shein did not immediately reply to requests for comment. Singapore-headquartered Shein has secured approval from Britain's financial regulator for its IPO but is still awaiting the green light from China's regulator which it also needs in order to go ahead, Reuters reported last month. Shein had aimed to complete the listing in the first half of this year, but market turmoil caused by Trump's tariffs and retaliation from China is likely to delay the IPO to the second half, sources have said.
Reuters
02-05-2025
- Business
- Reuters
Shein drops UK communications firms as Trump tariffs throw London IPO off course
LONDON, May 2 (Reuters) - Online fast-fashion retailer Shein has dropped Brunswick and FGS, two communications firms that were supporting its push for a London initial public offering (IPO), a source familiar with the matter confirmed on Friday, in the latest sign the flotation is not going to plan. Steep tariffs on Chinese goods imposed by U.S. President Donald Trump, along with the removal of a duty exemption on low-value ecommerce packages, are challenging Shein's business model, which relies on shipping clothes from factories in China directly to customers around the world. Brunswick was assisting with media relations while FGS was tasked with government relations, and both of their contracts with Shein ended on April 30 and will not be renewed, the source said. The news was first reported by The Times. Brunswick declined to comment. FGS and Shein did not immediately reply to requests for comment. Singapore-headquartered Shein has secured approval from Britain's financial regulator for its IPO but is still awaiting the green light from China's regulator which it also needs in order to go ahead, Reuters reported last month. Shein had aimed to complete the listing in the first half of this year, but market turmoil caused by Trump's tariffs and retaliation from China is likely to delay the IPO to the second half, sources have said.
