From Yahoo Finance: 2025-06-13 03:39:00

Online fast-fashion retailer Shein plans to list in Hong Kong after failing to secure approval for a London IPO. The move allows access to capital from the mainland and emerging markets while avoiding scrutiny of its supply chain practices. Shein has faced pressure over cotton sourcing and allegations of forced labor in China’s Xinjiang region.

The company, now headquartered in Singapore, denies any involvement in human rights abuses and requires contract manufacturers to source cotton from approved regions. Listing in Hong Kong would provide a platform for a global business with a mainland supply chain while avoiding political pushback faced in other markets.

Shein’s attempt to list in New York and London was met with regulatory hurdles and pushback from lawmakers. A Hong Kong listing could also lead to inclusion in the Stock Connect scheme, providing easier access for mainland and Hong Kong-based investors to buy shares. The move could attract Asian and emerging market-focused investors.

Hong Kong’s dominance in attracting mainland investment is evident with a 255% year-on-year increase in average daily turnover in Southbound trading. The decision to list in Hong Kong over London was influenced by the presence of different types of investors and concerns over supply chain issues.

Read more: Shein’s planned Hong Kong listing to benefit from wider capital pool, analysts say