(qlmbusinessnews.com Tues. 4th June, 2024) London, UK —

“Fast Fashion Giant Shein Plans Major UK Listing Worth £51.7bn”

Shein, the fast fashion giant whose popularity surged during the Covid pandemic, is considering a significant move to strengthen its ties with the UK by listing its shares on the London Stock Exchange. The Chinese company could potentially file the necessary paperwork this week, aiming for a valuation of $66bn (£51.7bn).

Renowned for its vast array of inexpensive clothing and successful collaborations with social media influencers, Shein has become one of the world’s largest fashion retailers. However, it has also faced harsh criticism regarding its environmental impact and allegations of using forced labour within its supply chain.

A spokesperson for Shein declined to comment on the prospective UK listing.

In an effort to enhance its environmental credentials, Shein recently launched a resale platform for customers in France, following a similar initiative in the US two years ago. This platform is expected to be introduced in the UK and Germany in the near future, although specific dates have not been disclosed.

The decision to pursue a UK listing follows challenges and increased scrutiny faced by Shein in the US. The company filed documents in the US last November but encountered resistance due to rising tensions between Washington and Beijing and concerns over its Chinese links.

Shein’s operational model relies on thousands of third-party suppliers and contract manufacturers near its headquarters in Guangzhou, China, enabling the company to rapidly produce new items. This “test and repeat” model, initially popularised by Zara owner Inditex, allows Shein to quickly respond to consumer demand.

Should Shein opt for a UK listing, it would be a significant boost for the City of London. A UK share listing would generate substantial business for the financial services industry, which still constitutes over 10% of the UK economy. Amidst several firms choosing the US for their listings, the UK government has been striving to make the country more appealing to companies.

Sources suggest Shein might submit the initial prospectus with the Financial Conduct Authority (FCA) this week or later in June. Filing a prospectus with the FCA is a mandatory first step for any company planning to list shares on the London Stock Exchange.

Colleen McHugh, chief investment officer at Wealthify, highlighted the potential impact on the London stock market, stating, “This could be big news for the London stock market.” However, she acknowledged that Shein might face difficulties due to allegations about its business practices.

Last year, a group of US lawmakers called for an investigation into Shein over claims that Uyghur forced labour was used in its supply chain. Shein has denied these allegations, stating it has “zero tolerance for forced labour.”

Additionally, a report in May by Swiss advocacy group Public Eye revealed that some workers at Shein’s suppliers were working up to 75 hours a week, despite promises from the company to improve conditions. Shein responded by stating it was “working hard” to address these issues and had made “significant progress on enhancing conditions.”


Regarding the potential London listing, McHugh remarked, “It’ll be down to the regulator as to whether or not the listing can go ahead here – but it won’t be without controversy.”

Shein's executive chairman, Donald Tang, an American citizen and former banker for Bear Stearns in Asia, has recently met with Chancellor Jeremy Hunt and Shadow Business Secretary Jonathan Reynolds to discuss the possibility of a London listing after facing obstacles in the US.

A Labour spokesperson affirmed the party’s commitment to high regulatory standards, stating, “We expect the highest regulatory standards and business practices from any company operating in the UK. We believe the best way to ensure this is to have more companies operating from and regulated by UK law.”

HM Treasury declined to comment on the matter.

This News Story is brought to you by QLM Business News, your Digital Media Channel
Visit QLM businessnews.com
For more business news stories also follow us on Facebook, X and Youtube.

To Help qlm business news bring you more new stories like this, please like, share and subscribe.

Unlock unparalleled business growth and effortlessly attract a stream of new customers through QLM Business News Sponsored Advertising. Elevate your brand's presence and captivate your target audience with precision. Visit QLMbusinessnews.com and click on “Advertise” to harness the power of strategic advertising. Don't miss this unparalleled opportunity to propel your business to new heights of success!

Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referenced in the accompanying news stories.

You May Also Like