Latest news with #LondonStockExchange
Yahoo
a day ago
- Business
- Yahoo
Here's what's behind China's IPO crackdown
Shein appears to be abandoning its hopes for a flotation in London. The fast-fashion retailer is reportedly preparing to list on the Hong Kong stock exchange as its application to launch an initial public offering on the London Stock Exchange stalls with Chinese regulators, Reuters reported Wednesday. While Shein is headquartered in Singapore, it was founded in China, where the majority of its suppliers remain. Sources told Reuters that the company aims to file a draft prospectus with Hong Kong's stock exchange in the coming weeks. The delay reflects a broader shift in how Chinese regulators are vetting listings. A total of 428 IPO applications were withdrawn in China in 2024, according to Yicai Global, marking a 75% increase compared to the previous year. Chinese companies raised approximately $25.2 billion through IPOs last year, according to data across various markets. That marks a 43% decline from the year before. Notable Rejections included bubble tea companies Mixue Bingcheng, Guming Holdings and Auntea Jenny, all of which had hoped to list in Hong Kong. The trend began when Wu Qing was appointed chief of the China Securities Regulatory Commission (CSRC) in February of last year. In his previous regulatory roles, Qing was dubbed the 'broker butcher,' for leading a crackdown on securities firms. He kicked off his tenure by launching a campaign to boost the quality of listed companies and revive China's struggling stock market. 'Every step of the IPO vetting and registration process should be put under the microscope,' he said, and vowed to 'keep fraudsters away from capital markets.' A series of high-profile scandals and underperforming IPOs over the past decade have knocked investor confidence and highlighted regulatory oversight. In 2021, China had a record-breaking number of IPOs. However, of the 39 that launched in the U.S., just 32 are still trading, according to data from the U.S.-China Economic and Security Review Commission. Today, shares in each of those companies trade for less than their launch value, with most down at least 90%, according to Quartz's analysis. Perhaps the most notable: Didi. The ride-hailing app listed in the U.S. despite concerns among China's regulators. Shortly after the launch, an investigation found the company broke cybersecurity and data privacy laws. Chinese authorities fined the firm $1.2 billion, and it was delisted from the New York Stock Exchange (ICE). New measures under Qing include higher profitability thresholds for listing on main boards and the Growth Enterprise Market. Quotas for onsite inspections have risen from 5% to 20% of applicants. Plus, there's been a tightening of rules relating to revenue sources and business sustainability. As part of the enhanced scrutiny, officials have reportedly shown up at an IPO applicant's office, sources told Asia Financial. Personal bank data was scanned and business transactions probed, sources said. For the latest news, Facebook, Twitter and Instagram. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Leader Live
a day ago
- Business
- Leader Live
Shein seeks Hong Kong stock market listing in blow to London
The fast-fashion firm has been looking to float on the London Stock Exchange for the past year but has struggled to get the go-ahead from Chinese regulators for the move. The company, which was founded in China but is based in Singapore, is planning to file draft papers with Hong Kong's stock exchange in the coming weeks, according to Reuters. Sources said the business intends to go public in the Asian financial hub within the year, the reports said. Shein has been contacted for comment. Shein's expected London listing was due to be a major boon for the City's beleaguered equity markets. The company had reportedly secured approval for the listing from the Financial Conduct Authority (FCA) in March. However, it has not yet received approval for the IPO (initial public offering) from Chinese regulators, including the China Securities Regulatory Commission (CSRC). The potential change in plans come amid a backdrop of uncertainty for the retailer, which will be heavily impacted by changes to US tax rules. The US Government said last month that it will close a loophole that allows overseas sellers to import parcels of goods worth less than 800 dollars (£592.80) directly without paying tax. In the UK, the Government has also said it will review its own similar rule which allows small parcels, worth less than £135, to enter the country without paying duties. Shein, and rivals including Temu, are reportedly significant beneficiaries of current rules and are facing major tax increases as a result.
Yahoo
2 days ago
- Business
- Yahoo
Shein seeks Hong Kong stock market listing in blow to London
Shein is seeking to list on the Hong Kong stock exchange and turn its back on a planned listing in London, according to reports. The fast-fashion firm has been looking to float on the London Stock Exchange for the past year but has struggled to get the go-ahead from Chinese regulators for the move. The company, which was founded in China but is based in Singapore, is planning to file draft papers with Hong Kong's stock exchange in the coming weeks, according to Reuters. Sources said the business intends to go public in the Asian financial hub within the year, the reports said. Shein has been contacted for comment. Shein's expected London listing was due to be a major boon for the City's beleaguered equity markets. The company had reportedly secured approval for the listing from the Financial Conduct Authority (FCA) in March. However, it has not yet received approval for the IPO (initial public offering) from Chinese regulators, including the China Securities Regulatory Commission (CSRC). The potential change in plans come amid a backdrop of uncertainty for the retailer, which will be heavily impacted by changes to US tax rules. The US Government said last month that it will close a loophole that allows overseas sellers to import parcels of goods worth less than 800 dollars (£592.80) directly without paying tax. In the UK, the Government has also said it will review its own similar rule which allows small parcels, worth less than £135, to enter the country without paying duties. Shein, and rivals including Temu, are reportedly significant beneficiaries of current rules and are facing major tax increases as a result. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
North Wales Chronicle
2 days ago
- Business
- North Wales Chronicle
Shein seeks Hong Kong stock market listing in blow to London
The fast-fashion firm has been looking to float on the London Stock Exchange for the past year but has struggled to get the go-ahead from Chinese regulators for the move. The company, which was founded in China but is based in Singapore, is planning to file draft papers with Hong Kong's stock exchange in the coming weeks, according to Reuters. Sources said the business intends to go public in the Asian financial hub within the year, the reports said. Shein has been contacted for comment. Shein's expected London listing was due to be a major boon for the City's beleaguered equity markets. The company had reportedly secured approval for the listing from the Financial Conduct Authority (FCA) in March. However, it has not yet received approval for the IPO (initial public offering) from Chinese regulators, including the China Securities Regulatory Commission (CSRC). The potential change in plans come amid a backdrop of uncertainty for the retailer, which will be heavily impacted by changes to US tax rules. The US Government said last month that it will close a loophole that allows overseas sellers to import parcels of goods worth less than 800 dollars (£592.80) directly without paying tax. In the UK, the Government has also said it will review its own similar rule which allows small parcels, worth less than £135, to enter the country without paying duties. Shein, and rivals including Temu, are reportedly significant beneficiaries of current rules and are facing major tax increases as a result.
South Wales Argus
2 days ago
- Business
- South Wales Argus
Shein seeks Hong Kong stock market listing in blow to London
The fast-fashion firm has been looking to float on the London Stock Exchange for the past year but has struggled to get the go-ahead from Chinese regulators for the move. The company, which was founded in China but is based in Singapore, is planning to file draft papers with Hong Kong's stock exchange in the coming weeks, according to Reuters. Sources said the business intends to go public in the Asian financial hub within the year, the reports said. Shein has been contacted for comment. Shein's expected London listing was due to be a major boon for the City's beleaguered equity markets. The company had reportedly secured approval for the listing from the Financial Conduct Authority (FCA) in March. However, it has not yet received approval for the IPO (initial public offering) from Chinese regulators, including the China Securities Regulatory Commission (CSRC). The potential change in plans come amid a backdrop of uncertainty for the retailer, which will be heavily impacted by changes to US tax rules. The US Government said last month that it will close a loophole that allows overseas sellers to import parcels of goods worth less than 800 dollars (£592.80) directly without paying tax. In the UK, the Government has also said it will review its own similar rule which allows small parcels, worth less than £135, to enter the country without paying duties. Shein, and rivals including Temu, are reportedly significant beneficiaries of current rules and are facing major tax increases as a result.
