Shein secures China regulatory approval for Hong Kong IPO

China – Fashion retailer Shein has reportedly secured approval from China’s securities regulator for its planned Hong Kong initial public offering (IPO), marking a significant step forward in the company’s years-long pursuit of a public listing.

Reuters reported that the approval notice was published on the website of the China Securities Regulatory Commission (CSRC), allowing Shein to move ahead with investor roadshows and preparations for a listing committee hearing at the Hong Kong Stock Exchange.

The company, which confidentially filed for a Hong Kong IPO, has yet to publicly release its prospectus. Sources familiar with the matter told Reuters that Shein could target a listing as early as September or October.

The approval comes about a year after Shein sought Beijing’s clearance for the offering. Reuters reported that the Chinese government had treated the listing as politically sensitive amid controversies surrounding the company, including allegations over labour practices in its Chinese supply chain and other reputational issues.

A spokesperson for Shein declined to comment, Reuters said.

The Hong Kong IPO marks the latest chapter in Shein’s prolonged listing efforts. The company initially sought a U.S. IPO in late 2023 before shifting its focus to London, where Britain’s Financial Conduct Authority approved its draft prospectus. However, Reuters reported that the listing stalled after the CSRC withheld its approval.

Last year, Bloomberg reported that Shein had confidentially filed for a Hong Kong IPO after its London plans faltered. The publication also reported that the Singapore-headquartered retailer had explored establishing a mainland China holding company to help secure regulatory approval, although discussions were at an early stage and no decision had been made.

Bloomberg noted that despite being headquartered in Singapore, Shein remains subject to Chinese overseas listing rules because of its extensive operations and supplier network in China, making CSRC approval essential for any overseas IPO.