Beijing (AFP) – Fashion titan Shein has won approval from China’s market watchdog for its initial public offering application in Hong Kong, the China Securities Regulatory Commission said in a statement on Friday. Shein’s plan to sell up to 341.6 million shares and list on the Hong Kong stock exchange is approved, the CSRC said. Plans to list the company in New York and London had been held back in recent years by regulatory hurdles, according to media reports.
A vast selection of products at stunningly low prices has boosted the popularity of Shein, along with China’s Temu and AliExpress, bringing them into the same league as Amazon in the US. Founded in 2012 by Chinese-born entrepreneur Xu Yangtian, Shein moved to Singapore in 2021 and sells trendy clothes in more than 150 countries. With most of its factories located in China, Shein sets itself apart from its so-called fast fashion competitors through the speed at which it designs products and a highly efficient supply and production chain. Xu pledged to allocate greater resources to the southern Chinese province of Guangdong earlier this year, seeking to leverage the efficiency of the local garment supply chain and the international logistics network. He said at the time that the Chinese Communist Party and the provincial government had given crucial support to Shein. Shein’s platform exports exceeded 100 billion yuan ($14.5 billion) in 2025.
Beijing’s approval signifies that “China is still supporting Hong Kong as a major offshore capital raising platform,” Kelvin Lam, a China-focused economist at Pantheon Macroeconomics, told AFP. The US regulatory ban on Shein’s listing bid in New York, which cited supply chain issues, reflected the geopolitical risks involved in listing abroad, Lam said, adding that the company also “has been undergoing a lot of problems with listing” in the UK. With the approval, China “removes a long-time and major political uncertainty for Shein,” Han Lin, China director for consultancy firm The Asia Group, told AFP. “Beijing is signaling selective reopening, not deregulation — rewarding companies that strengthen China’s economy while remaining aligned with national security and regulatory priorities,” he added.
The online platform has been scrutinized over its environmental footprint and allegations of human rights violations for years, but its executive chairman told AFP last year that the company has “zero tolerance” on forced labour. Shein also drew criticism last year in France over the discovery of childlike sex dolls on its platform. In June, French authorities imposed two fines on Shein totalling more than 22 million euros ($25.1 million), citing problems with product traceability, environmental labelling, and delivery times.
© 2024 AFP
