Bus advertising for the Chinese fashion company Shein on May 4, 2025 in London, Great Britain.
Mike Kemp In the pictures Getty images
The fast trouble of the fashion giant still grow after his very anticipated initial public offer in London (IPO) supposedly hit a fresh road blockade.
Reuters reports the Behemot of e-commerce on Wednesday, strives for a list in Hong Kong after he did not receive the consent of Chinese regulatory bodies for its very excited London IPO IPO.
The London offer was seen as a benefit for a 16-year-old Chinese company, providing an international ID and access to a deep and mature pool of Western investors. Analysts, however, stated that they were not surprised by moving, which is the continuous control surrounding the company.
“We always said that we thought Hong Kong would be a safer IPO option for Shein,” said Samuel Kerr, head of global capital markets at Mergermarket on Thursday, said CNBC “Squawk Box Europe”.
“For international investors, it was always to be IPO, which was wearing a lot of hair and maybe it will be better to play for a home audience,” he added.
Neither Shein nor the Chinese regulatory body China Securities Regulators Commission (CSRC) did not answer at the request of CNBC for a comment on plans. Hongkong Exchange and Clearing Limited said that he did not comment on individual companies.
Shein met with a battle uphill in his ambitions because he tries to shake the allegations regarding the use of forced labor in order to produce a T -shirt for 5 USD and 7 USD shoes. Although he abruptly denies the claims, last year, Shein moved his concentration from the New York list to London after he raised the constant touch of such issues from American legislators.
Meanwhile, fears related to commercial practices were caused by the investigation of the EU, which at the beginning of this week found A company violating the provisions on consumer protection, including the use of fake rebates, selling pressure and misleading buyers in the matter of sustainable development claims.
The closing of the American de minimis gap this month for cheap goods – and possible similar funds by the EU and Great Britain – only added to the misfortunes of the company.
“The criticism, which looked like an intensification leading to the London list, is partly because the Chinese regulatory organs were reluctant to give IPO green light,” wrote Susannah Streter, the head of money and markets at Hargreaves Lansdown on Wednesday.
Lost for London?
The proposed London number of London was also seen as ensuring a very necessary growth in the small IPO market in Great Britain after a series of annoyers and defects in connection with intensive competition from other financial markets.
“It will be a blow to London's ambitions to attract larger names to mention in the capital, but considering that they are disturbing, the company is not surprising (that) the company seems to be approaching in a different direction,” said Streter.
Despite this, some expressed the fears that the positioning of the controversial list as the face of London's revival IPO may send an improper signal to investors.
“In London there was a bit of anxiety that Shein would be seen as a comparative barometer for the future of the London Stock Exchange and IPO returning to London. I think it would be problematic,” said Kerr.
Additional control in Great Britain was also seen as a pressure on Shein's quote compared to other retail exchanges such as AsosIN Next AND Boohoo. The company was supposedly under pressure to reduce the valuation in London to about $ 30 billion, According to to Bloomberg, compared to previously estimated 50 billion dollars.
“The departure from Great Britain and away from those peers from Great Britain will probably allow a higher valuation,” noted Kerr.
In the meantime, the Shein list can sell another boon for Hong Kong in what is shaped to be a strong year for the market after the fresh flow of capital from investors on and offshore.
“Shein would be a significant milestone to mention Shein in London or New York, taking into account the maturity, depth and potential of the valuation of these markets,” said CNBC Rui MA, founder and analyst at Tech Buzz China.
“To say, the markets are ultimately shaped by the quality of their offers and participants. The Shein list is a win for Hong Kong – but it is not yet a turning point,” she added.
Shein Investors CNBC talked that he refused to comment on the reported relocation.