Retail giant, Shein, rekindles relations with China and plans a Hong Kong stock exchange debut, as aspirations for listings in New York or London gradually diminish.
In a potential shift, fashion retailer Shein is considering relocating its headquarters back to China, specifically to Nanjing. This move is aimed at facilitating regulatory approval from Chinese authorities for its planned Initial Public Offering (IPO) listing on the Hong Kong Stock Exchange.
The relocation would see the current Singapore-headquartered entity transform into a subsidiary, bringing Shein closer to meeting the China Securities and Exchange Regulatory Commission (CSRC) requirements needed for the Hong Kong listing.
Regulatory Approval and Streamlining the Application Process
The primary reason for this potential move is to align more closely with Chinese regulatory expectations, thereby improving Shein’s chances of approval by the CSRC. Additionally, a China-based parent company would streamline the application process for the Hong Kong Stock Exchange, which requires regulatory clearance from mainland China.
Strategic Fit and Return to Origins
Shein, founded in China in 2012, has much of its supply chain still situated in China. Therefore, the move back to its origins is strategically advantageous.
As of August 2025, the decision is preliminary. Shein has consulted lawyers about establishing a China-based parent company but has not confirmed the relocation. If completed, the move could significantly impact Shein's IPO by potentially satisfying mainland regulatory demands that have stalled prior offshore listing attempts.
The company’s listing in Hong Kong would mark a key milestone after previous refusals in western markets.
Unrelated Companies Mentioned
In the article, several other companies are mentioned but are not directly related to Shein's decision. These include Trading 212, AJ Bell, Hargreaves Lansdown, Interactive investor, and InvestEngine. For more information about these companies, you can visit their respective websites.
Shein has previously stated that it has 'zero tolerance' for unethical treatment of workers in its supply chain. Beijing denies allegations of human rights abuses in the Xinjiang region.
[1] Source: Shein Considering China Move to Facilitate IPO [2] Source: Shein's Hong Kong Listing Plans [3] Source: Shein's Struggles with Western Markets
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