Shein is reportedly aiming to list on the Hong Kong stock exchange as the online fast-fashion retailer struggles to gain the go-ahead from Chinese regulators for a flotation in London.
The company, which was founded in China where the majority of its suppliers are based but now has its headquarters in Singapore, is aiming to file a draft prospectus with Hong Kong’s stock exchange in the coming weeks, according to Reuters.
It said Shein planned to go public in the Asian financial hub this year, which would scotch hopes of what would have been one of the biggest listings to hit the London Stock Exchange.
Fears about a change of heart have been rising since it emerged earlier this month that Shein had dropped Brunswick and FGS, two communications companies that were aiding its push for a London listing.
Shein, which was valued at $66bn (£48.9bn) in a 2023 fundraising round, filed papers with Britain’s markets regulator, the Financial Conduct Authority, almost a year ago and gained the go-ahead last month.
However, it also requires approval from the China Securities Regulatory Commission from which it has faced unexpected delays, according to Reuters.
The reported change in venue comes amid wider concerns about Shein’s planned market listing after the US government closed a loophole that allowed overseas sellers to import parcels of goods worth less than $800 direct to shoppers without paying tax.
The company had initially been expected to list with a value of as much as £50bn in the UK but estimates have fallen to as little as half of that amount amid changes to US import rules and planned government action in the EU and UK.
Official Chinese data showed its total e-commerce shipping to the US dropped 65% by volume in the first three months of the year but rose by 28% in Europe, as companies such as Shein and Temu were hit by the change and additional US tariffs on Chinese-made goods.
While Shein has indicated it may shift production to different countries to help ease the effect on its prices, its low-tax model is facing challenges around the world.
The EU also said in February it would join the US in phasing out its exemption on customs duties for low-value parcels.
The UK chancellor, Rachel Reeves, is also reviewing the tax regime for imports of low-value goods in an effort to prevent Chinese companies undercutting British retailers by dumping cheap items on online marketplaces.
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Meanwhile, in the UK, Shein has faced questions about its links to forced Uyghur labour in the Xinjiang region of China.
In January, the company refused to reassure British MPs that its products do not include items produced in Xinjiang, prompting one MP to accuse its representative of “wilful ignorance”.
The advocacy group Stop Uyghur Genocide announced a legal challenge in June last year and sent the FCA a dossier in August alleging that Shein uses cotton from the region.
In February, Shein told MPs it had found two cases of child labour at its suppliers, and insisted it took a “strict zero-tolerance approach” to the issue.
