Shein wins China’s approval to list in Hong Kong
Chinese fast fashion retailer Shein has finally won approval from Beijing for an initial public offering (IPO) in Hong Kong, a notice posted by the China Securities Regulatory Commission (CSRC) has revealed.
According to Reuters, Shein filed confidentially in Hong Kong a year ago. It marks Shein’s third attempt to go public after failed attempts for listings in New York and London, and the company could now aim to list this autumn.
Shein was valued at around $66 billion in a fundraising round in 2023. However, with increasing competition, including from its main rival Temu, the company has seen its value fall, and The Wall Street Journal reported today that Shein is potentially targeting a $40 billion valuation for its IPO.
Founded in Nanjing by Chinese-born entrepreneur Sky Xu in 2012, Shein has in recent times found itself at the centre of growing trade tensions between the US and China.
The company has also faced criticism from regulators and industry commentators over working conditions in supplier factories, as well as the environmental impact of shipping such large volumes of cheap clothing by air.
In May, Shein snapped up direct-to-consumer US clothing brand Everlane from American private equity and investment firm L Catterton for around $100 million.
Headquartered in San Francisco, Everlane was founded in 2010 by Michael Preysman and Jesse Farmer, with sustainability and “radical transparency” at its core, in stark contrast to how Shein is largely viewed.
