Shein wins long-awaited Chinese approval for Hong Kong IPO - Nikkei Asia

IPO Shein wins long-awaited Chinese approval for Hong Kong IPO Fast-fashion retailer poised for listing after failed attempts in New York and London Clothes from fast-fashion brand Shein hang at its office in Sao Paulo, Brazil, in December 2025. © Reuters July 10, 2026 20:59 JST HONG KONG/LONDON (Reuters) -- China approved fast-fashion retailer Shein's long-awaited Hong Kong IPO on Friday, a notice posted on the China Securities Regulatory Commission (CSRC) website showed, clearing the way for a listing that failed in New York and London. A spokesperson for Shein did not immediately have any comment on the approval. The online retailer has waited a year for the green light from Beijing for its IPO, which had to be cleared by the highest levels of the ruling Chinese Communist Party, according to a source with direct knowledge of the matter. Beijing views Shein as politically sensitive and has been wary of the company causing it further embarrassment after a sex doll scandal in France and reports of poor labor practices at its suppliers in China, the source said. In 2022, Shein was valued at as much as $100 billion, although investors then adjusted their numbers as a pandemic-era e-commerce boom fizzled out and opposition from politicians, retailers and regulators intensified. Shein's last private fundraising round in May 2023 valued it at $66 billion. The source said Shein could now be aiming for a valuation of $40 billion to $50 billion in its IPO. That would make it far smaller than its main rival Temu's parent company PDD Holdings, which has a $117 billion market capitalization, but double the size of fast-fashion retailer H&M, which is worth around $24 billion and has lost market share to Shein. Shein, founded by Chinese-born entrepreneur Sky Xu in 2012, hopes to succeed in Hong Kong after failed attempts to list in New York and then London. The company, which sells $5 dresses and $10 jeans in around 150 countries, first filed for a U.S. IPO in November 2023, but ran into growing resistance from lawmakers and regulators. After the U.S. filing stalled, Shein turned to London, where Britain's Financial Conduct Authority approved a draft prospectus, but China's CSRC withheld its approval. Shein's protracted struggle to go public illustrates how geopolitics has reshaped the path for Chinese companies seeking international capital and how Beijing has tightened its grip on successful entrepreneurs since it halted the IPO of Jack Ma's Ant Group at the last minute in 2020. New rules passed by the CSRC in 2023 allowed it to vet offshore listings and block offerings that could threaten the country's national interests. Although Shein moved its headquarters to Singapore in 2022, it remained subject to Chinese IPO rules because its products are mostly made by a network of third-party suppliers in China. A Shein listing would mark a boon for Hong Kong, which has emerged this year as one of the top listing locations globally. In the last 12 months, the CSRC has cleared more than 180 other IPOs, public disclosures show, fueling a boom for the city's equity capital markets. Founded in Nanjing, China, Shein has been caught in the middle as relations between the U.S. and China soured and trade became increasingly politicized, with its business criticized in many countries for selling Chinese goods at rock-bottom prices and undercutting domestic retailers and manufacturers. Shein was criticized by competitors, regulators and non-governmental organizations for issues including its addictive app, poor working conditions in factories, and high emissions from sending $5 dresses across the world by air cargo. Its business model -- buying clothes in China and sending them by air direct to the doorsteps of shoppers -- has been challenged recently by U.S. and European efforts to close customs loopholes and apply duties to cheap parcels. Read Next Trade war Chinese door-to-door logistics networks grow in US to counter trade war Supply Chain H&M-backed Syre's Vietnam plant offers recycling alternative to China Business Asia How China's Anta joined Nike and Adidas on the world sportswear podium Technology EU fines Temu $230m over illegal product sales Commodities France pushes creation of clubs to share rare earths information: minister Retail Shein bets on $500m China distribution hub to fight headwinds overseas Retail Temu, Shein suspend sales as Turkey scraps online duty-free trade Retail Shein's shift to Europe faces blowback from French crackdown Latest on IPO IPO SK Hynix: South Korean memory chip titan raises $26.5bn in the US IPO Toyota-backed Chinese unicorn Momenta falls flat in Hong Kong bourse debut IPO Singapore hospital group makes market debut as population ages Sponsored Content About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.