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Time of India
9 hours ago
- Business
- Time of India
After failed listing attempts in the US and UK, China's Shein to file confidentially for Hong Kong IPO: What makes this a rare move for Chinese company
Shein, the China-founded fast-fashion giant, is reportedly set to file a draft prospectus confidentially for an initial public offering (IPO) in Hong Kong, potentially as early as this week, according to a report in Reuters that quotes three sources familiar with the matter. The move, as per Reuters exclusive report, could make Shein one of the largest IPOs in Hong Kong this year. The IPO also reportedly marks a rare departure from the city's norm of public IPO filings and follows Shein's failed listing attempts in the U.S. and London. What is confidential IPO filing The confidential filing, expected by Monday (June 30), would allow Shein to shield sensitive financial and operational details during the regulatory review process, a practice more common in the U.S. than in Hong Kong. This approach requires a waiver from the Hong Kong stock exchange's standard listing rules, which typically mandate public disclosure of IPO documents. The exchange may grant such exemptions for secondary listings or spinoffs from companies listed on recognized overseas exchanges like the NYSE or Nasdaq. Shein, however, is pursuing a primary listing, making the confidential approach unusual for the city, where high-profile IPOs like Xiaomi and Meituan involved public filings. Shein, valued at $66 billion in its 2023 pre-IPO fundraising round, must secure approval from the China Securities Regulatory Commission (CSRC) before proceeding with the Hong Kong IPO . The company will need to file with the CSRC within three days of submitting its Hong Kong application, in line with Chinese regulations for offshore listings. It remains unclear whether Shein has received preliminary approval from the CSRC. The Hong Kong stock exchange and Shein declined to comment, and the CSRC did not respond to inquiries. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like USDJPY đang đi lên không? IC Markets Đăng ký Undo How Shein has been impacted by the US-China trade war The filing comes as Shein navigates challenges from the U.S.-China trade war, with new U.S. tariffs on Chinese goods and the end of duty-free treatment for e-commerce parcels impacting its largest market. Shein, which sells low-cost apparel like $5 dresses and $10 jeans in 150 countries, shifted its headquarters to Singapore in 2022 but relies on a network of 7,000 Chinese suppliers, subjecting it to Beijing's IPO oversight. The company has also faced allegations of forced labor in its supply chain, which it denies, stating it prohibits suppliers from using Chinese cotton in U.S.-bound products. When Shein's attempt to list in the New York exchange failed Shein's pivot to Hong Kong follows an unsuccessful bid to list in the U.S. in late 2023. The company filed for a New York IPO but failed to secure CSRC approval, Reuters previously reported. The attempt was further complicated by U.S. regulatory scrutiny and trade tensions, including accusations from lawmakers and activists that Shein's supply chain involves forced labor in Xinjiang, a claim the company has rejected. The U.S. ban on imports linked to forced labor added pressure, and Shein's valuation dropped by a third from 2022 to 2023 amid these challenges. After the U.S. listing stalled, Shein explored a London IPO but was unable to gain Chinese regulatory approval, prompting the shift to Hong Kong as a more viable listing venue. A successful Hong Kong IPO could bolster the city's status as a global fundraising hub, which saw $12.8 billion in IPOs and secondary listings in the first half of 2025. Shein's listing, however, hinges on navigating regulatory hurdles and addressing concerns about its supply chain and the impact of U.S. tariffs, which could influence its final valuation. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Fashion United
2 days ago
- Business
- Fashion United
Shein to reportedly confidentially file for Hong Kong IPO
Fast fashion giant Shein is believed to be planning to confidentially file a draft prospectus for a Hong Kong IPO. This is according to three sources for Reuters, one of which said the filing could be submitted as soon as this week. Two sources said that, if approved, Shein's intention to file confidentially would be a waiver of one of the main listing rules in Hong Kong, and could represent the largest in the city this year. Documents related to Shein's IPO would remain undisclosed until the company moves into a hearing with the exchange. It would then have to secure approval from the China Securities Regulatory Commission (CSRC), a feat it wasn't able to achieve when pursuing an IPO in London. Shein had been targeting a listing in the UK since early 2024 after previously looking to New York for its IPO. In the US, it already faced opposition from politicians who had argued to block the filing, calling for better disclosure of Shein's Chinese operations. The company then turned to London as an alternative route, yet was also confronted by similar challenges from local market authorities, NGOs and fashion industry leaders. By April 2025, however, it was reported that the retailer had received approval from the UK's Financial Conduct Authority (FCA) for the London IPO, and thus notified the China Securities Regulatory Commission (CSRC). While Shein had anticipated backing from the CSRC, a source for Reuters said the company experienced an unforeseen delay and limited communication from the organisation.
Fashion Network
2 days ago
- Business
- Fashion Network
Shein to file confidentially for Hong Kong IPO amid global expansion plans
China-founded fast-fashion retailer Shein plans to file a draft prospectus confidentially for its Hong Kong listing, marking a rare departure from the usual practice of companies making public filings of IPO documents, three sources with knowledge of the matter said. One of the sources said Shein aims to submit the filing confidentially as soon as this week. A second source said Shein expects to make the filing by Monday. Shein's confidential filing, if approved, would represent a waiver of one of the main listing rules by the Hong Kong exchange for one of the world's most closely watched IPO candidates, and possibly the largest in the city this year, two of the sources said. The filing will come as the company, which sells low-priced apparel such as $5 dresses and $10 jeans in around 150 countries, makes its third attempt to go public, more than 18 months after it first filed for a U.S. IPO in late 2023. Confidential filings enable companies to keep vital operational and financial information under wraps for longer, allowing them to go through the regulatory review process without public disclosure. Hong Kong's listing rules permit confidential filings for secondary listings by companies already listed on recognized overseas exchanges, such as the New York Stock Exchange or Nasdaq. The listing rules show that the exchange could also waive or modify the publication requirements in a spinoff from an overseas-listed parent upon application by a new applicant. While this practice is common for U.S. IPO applicants, it remains relatively rare in Hong Kong, where high-profile IPOs have included Chinese tech giants Xiaomi and Meituan, which both filed publicly for their floats. The sources spoke to Reuters on the condition of anonymity as they were not authorized to speak to the media. Shein, founded by China-born entrepreneur Sky Xu, did not reply to a request for comment. The Hong Kong stock exchange declined to comment on individual companies. Documents, including financials, related to Shein's IPO will remain undisclosed until the company passes a hearing with the Hong Kong stock exchange, which is the final step in the city's regulatory approval process. Before that final step, Shein must secure approval from the China Securities Regulatory Commission (CSRC) to proceed with the Hong Kong IPO. It is not known if Shein has already secured a verbal nod from the Chinese securities regulator. The CSRC did not respond to Reuters' request for comment. Reuters first reported last month, citing sources, that Shein was working toward a listing in Hong Kong after its proposed London IPO failed to secure the green light from Chinese regulators. Reuters previously reported that the New York attempt also did not receive CSRC approval. Regulatory approval Shein's confidential filing enables regulators in Hong Kong and mainland China to review the IPO application, submit questions to the company, and conduct the approval process privately, the sources said. The regulators would be able to complete this process before the public — including potential institutional investors — can scrutinize the application materials and risk factors, they added. The filing would come against the backdrop of Shein grappling with the knock-on impacts of the Sino-U.S. trade war after U.S. President Donald Trump ended duty-free treatment of e-commerce parcels and hiked tariffs on Chinese goods, hurting its business in the U.S., its biggest market. Shein was valued at $66 billion during its pre-IPO fundraising round in 2023, down by a third from a funding round one year earlier. Its eventual IPO valuation will hinge on the impact of the tariff changes, sources have said. Risk disclosures A Shein listing would help Hong Kong, which saw $12.8 billion worth of IPOs and second listings in the first half, reestablish its credibility as a global fundraising center at a time of major volatility stoked by U.S. trade policy changes. Shein, founded in mainland China in 2012, is hoping to succeed in Hong Kong after failed attempts to list in New York and then London, where Britain's financial regulator approved the listing. In line with Beijing's rules for Chinese firms pursuing offshore listings, Shein must file with the CSRC within three working days of submitting its IPO application in Hong Kong. Shein relocated its headquarters from China to Singapore in 2022 and does not directly own or operate any factories. However, it remains subject to Chinese IPO regulations because most of its products are manufactured by a network of 7,000 third-party suppliers based in China, according to sources. The CSRC applies the rules on a "substance over form" basis, granting it discretion on when and how to implement them. A draft prospectus would normally disclose key risks to a company, including those linked to its supply chain. Shein has faced allegations from politicians and campaigners that its supply chain in China is linked to forced labor of Uyghur minorities in Xinjiang, a highly contentious issue for Beijing, which denies any abuses in the cotton-producing province. The U.S. bans imports of products made with forced labor from Xinjiang, and Shein has stated that it prohibits its suppliers from using Chinese cotton in products bound for the U.S. Shein has said its supplier code of conduct prohibiting forced labor applies worldwide. © Thomson Reuters 2025 All rights reserved.
Time of India
2 days ago
- Business
- Time of India
China fashion retailer Shein to file confidentially for Hong Kong IPO in rare move, sources say
Shein aims to submit the filing confidentially as soon as this week, one of the sources said. A second source said the filing was expected to be made by Monday. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads China-founded fast-fashion retailer Shein plans to file a draft prospectus confidentially for its Hong Kong listing, marking a rare departure from the usual practice of companies making public filings of IPO documents, three sources with knowledge of the matter aims to submit the filing confidentially as soon as this week, one of the sources said. A second source said the filing was expected to be made by confidential filing , if approved, would represent a waiver of one of the main listing rules by the Hong Kong exchange for one of the world's most closely-watched IPO candidates, and possibly the largest in the city this year, two of the sources filing will come as the company, which sells low-priced apparel such as $5 dresses and $10 jeans in around 150 countries, makes its third attempt to go public, more than 18 months after it first filed for a U.S. IPO in late filings enable companies to keep vital operational and financial information under wraps for longer and allow them to go through the regulatory review process without public Kong's listing rules permit confidential filings for secondary listings by companies already listed on recognised overseas exchanges, such as the New York Stock Exchange or exchange could also waive or modify the publication requirements in a spinoff from an overseas listed parent upon application by a new applicant, the listing rules this practice is common for IPO applicants in the U.S., it remains relatively rare in Hong Kong, where high-profile IPOs have included Chinese tech giants Xiaomi and Meituan, which both filed publicly for their sources spoke to Reuters on the condition of anonymity as they were not authorised to speak to the founded by China-born entrepreneur Sky Xu, did not reply to a request for comment. The Hong Kong stock exchange declined to comment on individual including financials, related to Shein's IPO will remain undisclosed until the company passes a hearing with the Hong Kong stock exchange, which is the final step in the city's regulatory approval to that final step, Shein must secure an approval from the China Securities Regulatory Commission (CSRC) to go ahead with the Hong Kong IPO. It is not known if Shein has already secured a verbal nod from the Chinese securities CSRC did not respond to Reuters request for first reported last month, citing sources, that Shein was working towards a listing in Hong Kong after its proposed London IPO failed to secure the green light from Chinese New York attempt also did not receive CSRC approval, Reuters previously confidential submission of the prospectus enables Hong Kong and mainland Chinese regulators to assess the IPO application, raise their questions to Shein and prepare it for regulatory approval privately, the sources regulators would be able to do that before public, including potential institutional investors', scrutiny of its application materials, including risk factors, they filing would come against the backdrop of Shein grappling with the knock-on impacts of the Sino-U.S. trade war after U.S. President Donald Trump ended duty-free treatment of ecommerce parcels and hiked tariffs on Chinese goods, hurting its business in the U.S., its biggest was valued at $66 billion during its pre-IPO fundraising round in 2023, down by a third from a funding round one year earlier. Its eventual IPO valuation will hinge on the impact of the tariff changes, sources have said.A Shein listing would help Hong Kong, which saw $12.8 billion worth of IPOs and second listings in the first half, re-establish its credibility as a global fundraising centre at a time of major volatility stoked by U.S. trade policy founded in mainland China in 2012, is hoping to succeed in Hong Kong after failed attempts to list in New York and then London, where Britain's financial regulator approved the will have to file with the CSRC within three working days after submitting its IPO application in Hong Kong, in line with Beijing's rules for Chinese firms seeking offshore shifted headquarters from China to Singapore in 2022 and does not own or operate any factories, but remains subject to Chinese IPO rules because its products are mostly made by a network of 7,000 third-party suppliers in China, sources have CSRC applies the rules on a "substance over form" basis, granting it discretion on when and how to implement them.A draft prospectus would normally disclose key risks to a company including those linked to its supply has faced allegations from politicians and campaigners that its supply chain in China is linked to forced labour of Uyghur minorities in Xinjiang, a highly contentious issue for Beijing, which denies any abuses in the cotton-producing U.S. has a ban in place on imports of products made using forced labour from Xinjiang, and Shein has said it does not allow its suppliers to use Chinese cotton in U.S.-bound has said its supplier code of conduct prohibiting forced labour applies worldwide.
South China Morning Post
18-06-2025
- Business
- South China Morning Post
China to loosen IPO restrictions by reinstating listings of unprofitable start-ups: CSRC
China plans to resume listings of unprofitable start-ups on its technology boards in an effort to support the nation's drive toward technological self-sufficiency and roll back curbs on the initial public offering (IPO) market , according to the head of the stock market regulator. At the Lujiazui Forum in Shanghai on Wednesday, Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), said listings would be restarted for pre-profit firms seeking to trade on the Shanghai exchange's Technology and Innovation Board, also known as the Star Market . The watchdog would also apply the rule to Shenzhen's ChiNext board, which hosts smaller companies. The relaxation came as a surprise to investors after two years of strict IPO approvals by the CSRC, which sought to arrest a decline in China's US$10.5 trillion stock market by reducing equity supplies. The move is seen as a supportive measure for China's start-ups at a time when Beijing is seeking to reduce its tech reliance on the US amid simmering trade tensions. 'Innovation requires alliance among scientists, entrepreneurs and investors,' Wu said. The Star Market 50 Index, which tracks the 50 biggest stocks on the board, including Semiconductor Manufacturing International and artificial intelligence (AI) chipmaker Cambricon Technologies, reversed a loss of as much as 0.4 per cent before trading little changed. A gauge of the ChiNext board dropped 0.4 per cent. The relaxation was meant to 'better and more precisely' serve high-quality tech companies that have breakthroughs, big spending on research and development, and promising business outlooks, Wu said. A wider array of unprofitable companies – including firms engaged in AI, commercial aviation and the low-altitude sector – could apply for listings on the Star Market before they became profitable, he said. The CSRC would also kick off a trial programme introducing 'seasoned' professional investors to trade the stocks after listings, Wu said.
