Shein weighs China relocation for Hong Kong listing after London IPO stalls

Fast-fashion giant Shein, which has seen its plans for a London Stock Exchange listing stall, is now reportedly weighing a move to shift its headquarters back to mainland China in a bid to win Beijing’s approval for a Hong Kong float.

The Singapore-headquartered retailer has held early discussions with lawyers about setting up a parent company in China, according to Bloomberg. While talks remain preliminary, the move could ease regulatory hurdles as Shein looks to float in Hong Kong after facing delays and political opposition to previous IPO plans in New York and London.

Founded in Nanjing in 2008, Shein has spent several years pursuing a blockbuster listing. Its attempt to go public in New York was blocked amid scrutiny from US lawmakers, while its London bid – once tipped to be one of the UK’s biggest listings in years – has stalled after China’s Securities Regulatory Commission (CSRC) withheld approval.

In July, Shein privately filed a draft prospectus with Hong Kong’s stock exchange, a step widely seen as a way to pressure UK regulators to push through its London listing. London is still understood to be the company’s preferred destination, but without CSRC approval, a Hong Kong IPO has become the most viable option.

The uncertainty comes as Shein’s financial performance shows signs of strain. In February, the retailer revealed profits fell by almost 40% in 2024 to £789 million, despite sales rising 19% to £30 billion. These figures were significantly below its earlier projections, and its valuation, once expected to reach £50 billion, has reportedly halved.

The group has also come under growing pressure from governments on both sides of the Atlantic. The US has closed its “de minimis” tax loophole for imports under $800, which had benefited Shein’s low-value shipments. The EU is preparing similar measures, while UK Chancellor Rachel Reeves is reviewing Britain’s own rules amid complaints from domestic retailers about being undercut.

Despite the headwinds, Shein continues to grow its market share in key territories, with UK sales surging 32% to £2.05 billion in 2024. The company has also been investing in local operations, opening offices in London and Manchester, alongside a series of marketing activations such as pop-up shops and nationwide bus tours.

Shein has been contacted for comment.