Finance
Shein's planned Hong Kong listing to benefit from wider capital pool, analysts say
Published by Global Banking & Finance Review®
Posted on June 13, 2025
3 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 13, 2025
3 min readLast updated: January 23, 2026
Shein's Hong Kong IPO aims to access mainland capital and avoid UK scrutiny. The move follows failed attempts in London and New York.
By Scott Murdoch
SYDNEY (Reuters) -Shein's planned listing in Hong Kong will help the online fast-fashion retailer avoid sharp investor scrutiny of its supply chains while tapping into capital from the mainland and emerging market investors, analysts said.
The Singapore-headquartered company has turned its public market debut ambitions to Hong Kong after failing to win Chinese securities regulatory approval to proceed with a London initial public offering, Reuters reported last month, citing sources.
While a listing, if successful, would be a big boost for Hong Kong, the move would cast a cloud over the company's efforts in recent years to gain legitimacy as a global, rather than a Chinese company.
Shein, which sells products including $5 bike shorts and $18 sundresses, has faced political and environmental group pressure in the UK over its cotton sourcing and supply chain practices.
It has also faced allegations that its clothes contain cotton from China's Xinjiang region, where the U.S. and NGOs have accused the Chinese government of human rights abuses and forced labour. Beijing denies any abuses.
The company, which moved its headquarters from China to Singapore in 2022, has previously said it has a zero-tolerance policy for forced labour and requires its contract manufacturers to only source cotton from approved regions.
"If it is the only option now open to them, the Hong Kong market does make sense as a place where you could list a global business with a mainland supply chain," said Eliot Fisk, a Hong Kong capital markets consultant and former JPMorgan banker.
Shein did not respond to a Reuters request for comment.
Before its attempt to list in London, Shein had pursued a listing in New York. The China-founded company had also faced regulatory hurdles and pushback from U.S. lawmakers in its attempt to list in the United States.
"Listing in Hong Kong would also likely dodge the protests and political pushback it might face in the UK," said Craig Coben, former Bank of America co-head of capital markets in Hong Kong.
While it is not known whether Shein plans to seek any waivers for a potential Hong Kong listing, several waivers, including disclosure-related waivers, can be sought by large IPO hopefuls in the Asian financial hub, according to capital market lawyers.
A Hong Kong listing would also allow Shein to eventually be added to the city's Stock Connect scheme which gives easier access for mainland and Hong Kong-based investors to buy shares on each country's respective markets more easily.
Shein would easily meet the market capitalisation and other criteria for inclusion in the connect scheme and for attracting mainland investment, said Hong Kong-based advisory firm Emmer Capital Partners CEO Manishi Raychaudhuri.
There was a 255% year-on-year increase in average daily turnover in the first three months of the year in Southbound trading, mainland investors buying and selling Hong Kong stocks, the Hong Kong Exchange said in its first quarter results.
"Hong Kong would have a dominant presence of Asia and emerging market-focused investors. London on the other hand, would have a significant presence of global and developed market investors," Raychaudhuri said.
"The supply chain issues would have been a more important consideration for the latter set of investors."
($1 = 7.8488 Hong Kong dollars)
(Reporting by Scott Murdoch; additional reporting by Helen Reid; Editing by Sumeet Chatterjee and Jacqueline Wong)
Shein's planned listing in Hong Kong aims to avoid sharp investor scrutiny of its supply chains while tapping into capital from mainland investors.
Shein faced regulatory hurdles and pushback from U.S. lawmakers when attempting to list in New York and had previously sought approval for a London IPO.
A Hong Kong listing would allow Shein to access a wider capital pool and potentially avoid the political pushback it might face in markets like the UK.
The Stock Connect scheme allows easier access for mainland and Hong Kong-based investors to buy shares on each other's markets, which Shein could benefit from if listed in Hong Kong.
Shein moved its headquarters from China to Singapore in 2022, which reflects its strategy to position itself as a global business rather than solely a Chinese company.
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