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Shein could reportedly ditch plans for its £50bn float in London amid growing concerns in China over how the retailer is portrayed in the UK, The Mail on Sunday has reported.It comes as criticisms of Shein have unsettled high-ranking officials in the Chinese government, sources told The Mail. The criticisms are said to have come from politicians, the press, other retailers and investors.
The Mail on Sunday recently reported that the British Fashion Council was “concerned” over the float, which would mark London’s most high-profile public float for more than a decade.
The trade body said the listing was a “significant concern” to the industry and that “questions remain” about its business practices.
The retailer has previously been criticised for using suppliers who exploit low-paid garment workers. While the group is based in Singapore, its pieces are manufactured in China and as a result, it needs approval from Beijing regulators to list its shares in London.
A source told the Mail that Beijing authorities could now apply pressure on Shein to list in Hong Kong instead of London.
Earlier this month, it was reported that Shein was eyeing a London flotation that would value the fast-fashion company at £50bn.
According to Sky News, the company planned to file a prospectus with the Financial Conduct Authority for approval ahead of the potential float.
Last month, it was reported that Shein was ramping up its move towards a London IPO after its attempt to float in New York faced regulatory hurdles. One source said that Shein planned to update China’s securities regulator on changing the IPO venue and file with the London Stock Exchange.
According to previous reports, the fast-fashion company started exploring the London option earlier this year in case US regulators blocked the option of a US flotation due to its ties to China.
Shein has been contacted for comment.
