Latest news with #China-founded
Time of India
11 hours ago
- Business
- Time of India
3rd time lucky? Shein set to file for Hong Kong IPO
China-founded fast-fashion retailer Shein is planning to confidentially file a draft prospectus for an IPO in Hong Kong in the coming days, which would mark the third venue the company has sought to debut in, Reuters reported. The move to apply confidentially is rare in Hong Kong, where companies generally make such filings public. Shein had a globe-trotting path to the public markets, with its prior attempts to list in the US and London facing scrutiny over its supply-chain practices and tariff impacts. Shein didn't reply to a request for comment from Reuters. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Fashion Network
a day 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
a day 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.
Fashion Network
15-06-2025
- Business
- Fashion Network
Shein targets Hong Kong listing to tap wider investor base
Shein, which sells products such as $5 bike shorts and $18 sundresses, has faced political and environmental criticism in the UK over its cotton sourcing and supply chain practices. The company has also faced allegations that its products contain cotton from China's Xinjiang region, where the U.S. and human rights groups have accused the Chinese government of forced labor and other abuses. Beijing denies any wrongdoing. Shein, which relocated its headquarters from China to Singapore in 2022, maintains that it enforces a zero-tolerance policy for forced labor and requires its contract manufacturers to source cotton only from approved regions. "If this is the only option now open to them, the Hong Kong market makes sense as a place to list a global business with a mainland supply chain," said Eliot Fisk, a Hong Kong capital markets consultant and former JPMorgan banker. Shein did not respond to a Reuters request for comment. Before pursuing a London listing, Shein had also explored listing in New York. The China-founded company encountered regulatory hurdles and political opposition from U.S. lawmakers in its attempt to list in the United States. "Listing in Hong Kong would also help Shein avoid the protests and political pushback it might face in the UK," said Craig Coben, former Bank of America co-head of capital markets in Hong Kong. It remains unclear whether Shein will seek any waivers for a potential Hong Kong listing. According to capital markets lawyers, several waivers— including those related to disclosure— are available to large IPO candidates in Hong Kong. A Hong Kong listing would also position Shein for eventual inclusion in the city's Stock Connect program, facilitating cross-border share trading between mainland China and Hong Kong investors. Shein would easily meet the market capitalisation and other criteria required for Stock Connect inclusion and attracting mainland investment, according to Manishi Raychaudhuri, CEO of Hong Kong-based advisory firm Emmer Capital Partners. The Hong Kong Exchange reported a 255% year-on-year increase in average daily turnover in Southbound trading— mainland investors buying and selling Hong Kong stocks— in the first quarter of this year. "Hong Kong would attract a dominant base of Asia- and emerging market-focused investors. London, by contrast, would draw a larger share of global and developed market investors," Raychaudhuri said. "Supply chain issues would have carried more weight with the latter group."
Business Times
13-06-2025
- Business
- Business Times
Shein's planned Hong Kong listing to benefit from wider capital pool, analysts say
[SYDNEY] Shein's planned listing in Hong Kong will help the online fast-fashion retailer avoid sharp investor scrutiny of its supply chains while tapping into capital from the mainland and emerging market investors, analysts said. The Singapore-headquartered company has turned its public market debut ambitions to Hong Kong after failing to win Chinese securities regulatory approval to proceed with a London initial public offering (IPO), Reuters reported last month, citing sources. While a listing, if successful, would be a big boost for Hong Kong, the move would cast a cloud over the company's efforts in recent years to gain legitimacy as a global, rather than Chinese, company. Shein, which sells products including US$5 bike shorts and US$18 sundresses, has faced political and environmental group pressure in the UK over its cotton sourcing and supply chain practices. It has also faced allegations that its clothes contain cotton from China's Xinjiang region, where the US and NGOs have accused the Chinese government of human rights abuses and forced labour. Beijing denies any abuses. The company, which moved its headquarters from China to Singapore in 2022, has previously said it has a zero-tolerance policy for forced labour and requires its contract manufacturers to only source cotton from approved regions. 'If it is the only option now open to them, the Hong Kong market does make sense as a place where you could list a global business with a mainland supply chain,' said Eliot Fisk, a Hong Kong capital markets consultant and former JPMorgan banker. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Shein did not respond to a Reuters request for comment. Before its attempt to list in London, Shein had pursued a listing in New York. The China-founded company had also faced regulatory hurdles and pushback from US lawmakers in its attempt to list in the US. 'Listing in Hong Kong would also likely dodge the protests and political pushback it might face in the UK,' said Craig Coben, former Bank of America co-head of capital markets in Hong Kong. While it is not known whether Shein plans to seek any waivers for a potential Hong Kong listing, several waivers, including disclosure-related waivers, can be sought by large IPO hopefuls in the Asian financial hub, according to capital market lawyers. A Hong Kong listing would also allow Shein to eventually be added to the city's Stock Connect, scheme which gives easier access for mainland and Hong-Kong-based investors to buy shares on each country's respective markets more easily. Shein would easily meet the market capitalisation and other criteria for inclusion in the connect scheme and for attracting mainland investment, said Hong Kong-based advisory firm Emmer Capital Partners CEO Manishi Raychaudhuri. There was a 255 per cent year-on-year increase in average daily turnover in the first three months of the year in Southbound trading – mainland investors buying and selling Hong Kong stocks – the Hong Kong Exchange said in its first quarter results. 'Hong Kong would have a dominant presence of Asia and emerging market-focused investors. London on the other hand, would have a significant presence of global and developed market investors,' Raychaudhuri said. 'The supply chain issues would have been a more important consideration for the latter set of investors.' REUTERS
