“MORE TO DO WITH CHINA THAN LONDON”
Reuters could not determine if Shein had sought or received a nod from the CSRC for the Hong Kong listing. The company had sought Chinese regulatory approval to go ahead with processes to list in New York and later in London.
Shein’s filings with the CSRC make it subject to Beijing’s listing rules for Chinese firms going public offshore, two sources have said.
The rules are applied on “a substance over form” basis, giving the CSRC discretion on when and how to implement them, the sources added.
Shein does not own or operate any factories, instead sourcing its products from 7,000 third-party suppliers in China as well as some factories in other countries like Brazil and Türkiye.
The company had aimed to go public in London in the first half of this year.
“Shein’s listing would have been a boost to the market,” said Alasdair Steele, corporate partner with law firm CMS.
“However, there was never any guarantee that a single large listing would reignite the IPO market.”
“The Shein news is much more to do with China than London,” said Lisa Gordon, chair of investment bank Cavendish and a member of the Capital Markets Industry Taskforce (CMIT) – a group dedicated to the revival of Britain’s markets.
“The London market is in a very good position.”
This is not the United Kingdom capital’s first major IPO loss this year.
In February, Unilever said it had chosen Amsterdam for the main listing of its ice cream business. That follows a string of London-listed companies moving, such as online betting company Flutter. Others, such as Shell, are considering leaving as well.
