Chinese regulators are said to have vetoed Shein’s planned London Stock Exchange (LSE) IPO in favour of Hong Kong. This is likely to have been a political decision given the loudly expressed disquiet about the ethics of the Shein business, as well as its impact on its UK competitors.
Whilst the switch from listing in London which had been approved by the FCA will be a blow for the LSE and city traders, the news will be welcomed by Shein’s UK competitors who have long rallied against the giant due to its competitive advantage which revolves around being able to ship direct to consumers from China bypassing import duties and VAT. Shein has also been accused of selling products which have been manufactured in factories which exploit workers.
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