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Shein is reportedly pivoting towards a listing in Hong Kong after a proposed IPO in London hit a roadblock from Chinese regulators, sources have told Reuters.
The retailer is said to be looking to file a draft prospectus with Hong Kong’s stock exchange in the coming weeks, with plans to go public in the region within the year, sources told Reuters.
The move comes as the fast-fashion group has not yet received approval for its London IPO from Chinese regulators, including the China Securities Regulatory Commission (CSRC).
Reuters said it “could not determine” if Shein had sought or received a nod from the CSRC for the Hong Kong listing.
While Shein had previously secured approval for its IPO in London, a source told Reuters that the company had expected a green light from Chinese regulators to follow the FCA’s approval, but experienced an “unexpected” delay and limited communication from the regulator.
Allegations that Shein’s products contain cotton from Xinjiang as well as a planned legal challenge to the London IPO by a non-governmental organisation campaigning against forced labour in China have reportedly “complicated” the London listing.
Shein had been preparing for its London float for a number of months after originally planning to float on the New York Stock Exchange.
However, it faced regulatory hurdles between China and the US, as well as pushback from American regulators.
The US and NGOs have accused China of human rights abuses in the Xinjiang Uyghur Autonomous Region, amid claims Uyghur people are forced to work producing cotton and other goods.
Shein said it has a zero tolerance policy over forced labour and child labour in its supply chain, however.
Shein has been contacted for further comment.
