Shein turns to China as Hong Kong IPO nears
Fast-fashion giant Shein is preparing to make its stock market debut in Hong Kong after years of efforts to list in the United States and Britain, marking a significant shift in how the company presents its relationship with China.
The company is expected to raise around $1.7 billion through its Hong Kong initial public offering, with a valuation of about $26.5 billion. That figure is considerably below the company’s valuation in 2022.
Shein had previously sought to establish itself as a global company. It moved its headquarters to Singapore in 2021 and promoted plans to expand manufacturing and operations in countries including Brazil, Türkiye and parts of Europe.
However, its attempts to secure a Western listing faced regulatory and political obstacles. Chinese authorities were also reportedly involved in blocking earlier efforts to list in New York and London.
After shifting its focus to Hong Kong in 2025, Shein founder Sky Xu increased his engagement with Chinese officials and became more involved in regulatory and capital-market discussions inside the country, according to people familiar with the matter.
Xu also made a rare public appearance at a business forum in Guangdong earlier this year, where he announced plans for Shein to invest $1.5 billion in the province.
He said the company would deepen its presence in Guangdong and develop its smart supply-chain system while contributing to the region’s fashion industry.
Shein also opened a research and development centre in Nanjing, the eastern Chinese city where the company was founded in 2012.
These moves helped reinforce the company’s economic links with China at a time when Beijing has been paying close attention to companies with major overseas operations.
Officials in Guangdong also reportedly highlighted Shein’s contribution to employment and domestic economic activity when engaging with central authorities.
The company has sought to emphasise that its main business is overseas rather than in China. Shein does not market its extremely low-priced products to Chinese consumers, allowing it to distance itself from the intense competition among domestic e-commerce platforms.
Shein has instead argued that its international operations benefit China by generating foreign currency and supporting Chinese manufacturing and supply chains.
The company’s Hong Kong prospectus describes China as the foundation of its global logistics and fulfilment network. Nearly 80 per cent of Shein’s workforce is based in mainland China.
The shift comes after growing difficulties in Western markets. In the United States, lawmakers raised concerns over Shein’s supply chains and called for stronger assurances that its products were not linked to forced labour.
The company has also faced scrutiny in Europe over competition, product safety and items offered through its online marketplace.
At the same time, changes to low-value import rules in the US and Europe have created additional challenges for Shein’s business model, which relies heavily on inexpensive shipments directly to consumers.
Analysts say the company’s experience demonstrates how geopolitical tensions are increasingly influencing corporate decisions and stock-market listings.
