Shein is set to pursue a flotation on the Hong Kong Stock Exchange after facing delays in securing regulatory approval from Chinese authorities for a proposed London IPO, according to reports.
The fast-fashion giant, originally founded in China and now headquartered in Singapore, is expected to file a draft prospectus with the Hong Kong exchange in the coming weeks. A listing could take place later this year, dashing hopes for what would have been one of the largest flotations on the London Stock Exchange.
The move follows growing speculation about Shein’s shifting plans, particularly after it dropped UK-based communications firms Brunswick and FGS, which had been supporting its London IPO efforts. The pivot to Hong Kong marks the latest chapter in Shein’s long-running efforts to go public, after previous attempts in New York also faltered due to regulatory and political concerns.
Despite receiving a green light from the UK’s Financial Conduct Authority in March, Shein’s London IPO ambitions have stalled due to the lack of approval from Chinese regulators. Reuters reported earlier this month that the company also dropped two key UK public relations firms, Brunswick and FGS, further signalling a shift in direction.
In February, Shein was reported to be under pressure from investors to slash its valuation to around US$30 billion (£23.8 billion) to push the IPO through—down from an expected US$50 billion and less than half the US$66 billion valuation achieved in its 2023 funding round.
Adding to the complexity, the company has faced mounting trade headwinds in the US, including tariffs introduced under the Trump administration and the closure of the “de minimis” loophole, which previously allowed duty-free imports on parcels valued under $800. In response, Shein is said to be urgently exploring restructuring options for its US operations, including relocating some of its production to Brazil or India.
Shein initially pursued a New York listing as part of its wider strategy to shed its Chinese image and appeal to Western investors. However, a move to list in Hong Kong now runs counter to that goal and could undermine its ambitions to be seen as a truly global brand.
