Shein wins China approval for Hong Kong IPO, Reuters says

The China Securities Regulatory Commission posted approval for Shein’s Hong Kong initial public offering on Friday, clearing the ultra fast-fashion retailer for a listing that had been blocked or delayed in New York and London. The decision opens the door for investor roadshows and the next hearing at the Hong Kong Stock Exchange, a major step for one of the most closely watched consumer listings in years.

The approval matters well beyond Shein’s own fundraising plans. It shows how Hong Kong can still serve as the exit route for Chinese-linked companies when U.S. and U.K. paths become politically or regulatorily fraught, especially for businesses exposed to questions about supply chains, data handling and labor practices. Shein, founded in 2012 by Chinese-born entrepreneur Sky Xu, had waited about a year for Beijing’s green light, and the listing required approval at the highest levels of the Chinese Communist Party, underscoring how sensitive large overseas flotations remain for Chinese regulators.

Shein’s route to the market has been shaped by geopolitics as much as by business performance. Its first U.S. IPO filing came in November 2023, after earlier efforts to go public in New York and London failed to gain traction amid scrutiny over alleged forced-labor risks, data practices and disclosure disputes tied to Xinjiang-related supply-chain exposure. The company’s London plans later stalled amid disagreements over how to frame those risks. That history makes Hong Kong the most workable venue left for a company that sells about $5 dresses and $10 jeans in roughly 150 countries.

The pricing debate is now as important as the venue. Shein was valued at as much as $100 billion in 2022, then at $66 billion in its last private round in May 2023. It is now seen targeting a $40 billion to $50 billion valuation, a range that would still leave it above H&M but below PDD Holdings, the parent of Temu. Backers include General Atlantic, HongShan Capital, Mubadala Investment, Brookfield and Claure Group.

For Hong Kong, the listing would be a flagship deal after a weak stretch for consumer brands and a market environment that has punished uncertain growth stories. For Beijing, it would signal that one of China’s most global consumer companies can still be channelled through a tightly supervised offshore market, even as officials keep a firmer grip on overseas listings after the 2020 halt of Ant Group’s IPO. Shein could aim to price and list as soon as September or October 2026 if the remaining steps proceed smoothly.