LONDON (Reuters) – The chairman of a British parliamentary committee wrote to the London Stock Exchange on Thursday to raise concerns about evidence given by Shein's representative at a hearing this week, and to ask how the exchange checks statements from companies that want to list.
The lack of response from Shein's general counsel for Europe, the Middle East and Africa to lawmakers' questions about its supply chain at a committee hearing on Tuesday had lawmakers “deeply concerned”, chairman Liam Byrne said in the letter to the CEO. LSE Julia Hoggett.
Online fast-casual retailer Shein is working towards an IPO in London in the first half of this year but has faced scrutiny over its China-based suppliers and working practices.
In the letter Byrne asked “what checks, if any, the London Stock Exchange has in place to verify statements from companies seeking to list, paying particular attention to their safeguards against the use of forced labor in their products.”
Byrne also wrote to Britain's financial regulator, which is responsible for assessing and approving stock market listings like Shein's, asking how it ensures all legal risks are disclosed before an IPO.
(Reporting by Helen Reid, Editing by Matt Scuffham)