Shein eyes Hong Kong listing as London float stalls

Fast-fashion giant Shein is reportedly pivoting towards a Hong Kong stock market listing, as its highly anticipated blockbuster bid to float in London struggles to clear Chinese regulatory hurdles.

Shein, which was founded in China but is now headquartered in Singapore, plans to submit a draft prospectus to the Hong Kong Stock Exchange in the coming weeks, according to Reuters.

The shift would dash hopes for a blockbuster London IPO, once expected to be among the largest in recent years. Shein had filed paperwork with the UK’s Financial Conduct Authority almost a year ago and received the regulator’s green light last month. However, final approval from the China Securities Regulatory Commission (CSRC) has reportedly been delayed, complicating plans to list in the UK.

The move comes amid growing geopolitical and trade pressures. Changes to US import rules - specifically, the closure of the 'de minimis rule', which was a loophole that allowed untaxed imports of goods under $800 - have hit Shein hard.

In April, Shein and its rival Temu issued warnings to US consumers about upcoming price increases, citing rising costs linked to new trade tariffs introduced by President Trump. Official Chinese data showed a 65% drop in e-commerce parcel volumes to the US during the first quarter of 2025, while shipments to Europe rose by 28%.

This followed February's news, when the company revealed its profits had dropped by more than a third last year. The company's net profit declined by almost 40% to £789 million ($1 billion) in 2024.

Annual sales jumped 19% to £30 billion ($38 billion), but were much lower than its initial projections of £42.6 billion ($45 billion) in sales and £3.8 billion ($4.8 billion) in net profit that the business had previously informed investors in early 2023.

Shein’s valuation has taken a hit in this climate. Once expected to go public at a valuation as high as £50 billion, recent estimates suggest the figure may be as low as half that.

The EU is also moving to tighten its tax regime on low-value imports, following similar steps by the US Meanwhile, UK Chancellor Rachel Reeves is said to be reviewing Britain’s own rules to support domestic retailers who feel undercut by cheap imports. Shein has hinted at diversifying its supply chain away from China to protect its cost advantage, but the company continues to face serious scrutiny over ethical sourcing.

Shein has been contacted for comment.