Shein’s embattled IPO signals mounting troubles for fast fashion giant

Bus stop advertisements for the Chinese fashion brand Shein were spotted in London, United Kingdom on May 4, 2025. Shein, a fast-fashion giant, faced setbacks in its London initial public offering (IPO) and is now reportedly looking to list in Hong Kong after failing to secure approval from Chinese regulators for its London IPO. The move to Hong Kong was not surprising to analysts, who cited ongoing scrutiny surrounding the company. Shein has been battling allegations of forced labor practices and has faced criticism over its commercial operations, including an EU investigation that found the company in breach of consumer protection laws. The decision to shift focus to Hong Kong is seen as a strategic move given the challenges faced by Shein in its listing ambitions. The news of Shein’s change in listing plans has raised concerns about the impact on London’s IPO market, which has been struggling amid competition from other financial hubs. Despite the setbacks in London, some experts believe that listing in Hong Kong could offer Shein a higher valuation and be a positive development for the market.