Shein aborts London IPO; targets Hong Kong

China- founded fast-fashion giant Shein has decided to change course for its long-awaited initial public offering (IPO). After encountering obstacles to its London IPO due to a lack of approval from Chinese regulators, the company is now reportedly exploring a Hong Kong listing.

The City of London could lose one of the most anticipated IPOs of the year. Shein , the low-cost fashion e-commerce giant, is reportedly reorienting its initial public offering (IPO) plans to Hong Kong , after its attempt to list on the London stock exchange failed, according to reports published Wednesday, May 28.

The main reason cited for this change in strategy is the lack of approval from Chinese regulators for the London operation. Sources familiar with the situation indicate that Shein intends to submit a draft prospectus to the Hong Kong Stock Exchange "in the coming weeks," with the goal of completing its listing "within the year."

The move comes at a significant time, just days after Chinese electric vehicle battery maker Contemporary Amperex Technology Co. (CATL) made a successful debut on the Hong Kong stock exchange, raising more than $4.5 billion in what was the largest global IPO so far in 2025.

Shein's path to the public markets has been fraught with difficulties and changes in direction. Initially, the company had plans to list in the United States. However, according to previous reports, Shein withdrew these plans after the U.S. Securities and Exchange Commission (SEC) required the company to conduct its IPO publicly, leading the firm to consider London as an alternative.

Now, the stalemate in London and the new focus on Hong Kong underscore the complex regulatory and geopolitical environment facing large multinationals, especially those with origins or a significant portion of their operations in China.

The decision to seek Chinese regulatory approval, even for a London listing, highlights the influence Beijing can exert over the strategic decisions of companies it considers within its purview, regardless of where they seek capital. For London, which has redoubled efforts to attract large international IPOs after Brexit and maintain its status as a global financial center, the potential loss of Shein's listing would represent a symbolic blow.

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Shein's tortuous IPO process also reflects the intense scrutiny facing e-commerce companies with "fast fashion" business models. These companies, with complex global supply chains, face growing questions about their labor practices, the environmental impact of their mass production, and the transparency of their millions of customer data.

Regulators in multiple jurisdictions, including the United States, the United Kingdom, and China itself, are increasingly vigilant about these issues, especially when it comes to such high-profile companies with a business model as disruptive as Shein's. The company's difficulties in obtaining approval in several major markets suggest that it may need to make significant adjustments to its operations or its level of transparency to meet the diverse and sometimes conflicting regulatory and corporate governance requirements.

Meanwhile, in London's financial world, other news indicates dynamism. The international law firm Crowell & Moring has announced the expansion of its presence in the British capital, relocating its office to a significantly larger space at 199 Bishopsgate. This move, which more than doubles its previous footprint, responds to the "robust growth" the firm has experienced in the British market.

Shein's possible choice of Hong Kong could be interpreted as a tendency of some Chinese companies to "return home" or to jurisdictions perceived as more aligned with Beijing's interests, in a context of growing geopolitical tensions with the West.