Catenaa, Wednesday, May 28, 2025- Shein is working towards a listing in Hong Kong after the fast-fashion retailer failed to gain approval for its initial public offering (IPO) in London from Chinese regulators, Reuters reported.
Quoting sources familiar with the matter, the report said that Shein aims to file a draft prospectus with Hong Kong’s stock exchange in the coming weeks as Shein plans to go public in the Asian financial hub within the year.
Two sources also said that Shein plans to change the listing venue as it has not yet received approval for its London IPO from Chinese regulators, notably the China Securities Regulatory Commission (CSRC).
The company, which sells products including $5 bike shorts and $18 sundresses, in March secured approval from Britain’s Financial Conduct Authority (FCA) for its IPO in London, and soon informed the CSRC, Reuters said.
The company initially expected the green light from Chinese regulators to follow swiftly after the FCA but has since experienced an unexpected delay and limited communication from the CSRC, one source told Reuters.
Before its attempt to list in London, Shein had pursued a listing in New York, as part of its efforts to gain legitimacy as a global, rather than a Chinese company, and access to a wide pool of large Western investors.
A listing in Hong Kong would go against that strategy and could hurt its global credentials.
Regardless of where Shein lists, its eventual IPO valuation will hinge on the impact of the removal of the de minimis exemption, the sources have said. The US exemption is still in place for goods that are not from China or Hong Kong.
Reuters reported in February that Shein was set to cut its valuation in a potential London listing to around $50 billion, nearly a quarter less than the $66 billion valuation it had achieved in a $2 billion private fundraising in 2023.
LSEG data showed that companies have raised $9.7 billion in Hong Kong through IPOs and second listings so far in 2025, compared to $1.05 billion at the same time last year.
