Chinese-founded fast-fashion retailer Shein is set to float in Hong Kong next week. This follows earlier consideration of a listing on the London stock market, which was a topic of discussion during 2024 and into last year.
The possibility of a London flotation was reportedly encouraged by politicians from both main parties, who saw it as a way to boost the local listings scene and demonstrate the UK's openness to international capital. However, the idea of a London listing later receded, reportedly encouraged by pressure from Beijing.
Shein's valuation for the Hong Kong float will be $27bn (£20bn), a decrease from the £50bn that was discussed during the period of potential London listing. This reduced valuation is also said to reflect political and societal resistance to the practice of shipping low-value goods from China to take advantage of tax breaks.
The company had previously rejected a New York listing due to US-China tensions and questions from US lawmakers regarding labour practices in its supply chains. In January last year, Shein's general counsel in Europe appeared before the Commons business select committee but declined to provide detailed operational information regarding cotton sourcing from China.