Shein receives approval for Hong Kong IPO from Chinese regulators
Beijing clears the online retail giant to seek an initial public offering in Hong Kong, after its plans to float in London and New York hit a dead end
Online retail giant Shein Global Holdings has secured approval from the China Securities Regulatory Commission (CSRC) to seek an initial public offering in Hong Kong, a long-awaited step for the firm after its attempts to list in New York or London stalled.
The firm plans to issue up to 341.6 million shares and list on the Hong Kong stock exchange, according to a Friday statement by the CSRC.
Shein previously sought to go public in New York or London, according to earlier media reports, but those attempts have halted amid US and European regulatory scrutiny of the firm’s operations on issues ranging from its supply chain to tax.
Shein, which was founded in China in 2008 but later moved its headquarters to Singapore, previously attempted to distance itself from China as its global profile rose, despite most of its suppliers being based on the mainland. But the firm has been trying to build closer ties with Beijing amid difficulties in securing a listing outside China.
Analysts said the approval was positive news for Hong Kong’s equities market as it would expand the pool of high-quality listed companies, though it was too early to say whether the listing itself would materially lift the broader market.
“While one listing alone will not transform the IPO landscape, [it] reinforces the city’s ability to attract large, internationally relevant listings,” said Matteo Giovannini, senior finance manager at the Industrial and Commercial Bank of China.