Shein, the China-founded fast-fashion giant, has received approval from the UK’s Financial Conduct Authority (FCA) for a potential initial public offering (IPO) in London—a key step in its long-anticipated public listing. The approval follows a confidential filing with the FCA in June 2023.
Despite this progress, Shein faces significant challenges. Chief among them is global market volatility, exacerbated by U.S. President Donald Trump’s recent imposition of 145% tariffs on Chinese imports. Additionally, tighter U.S. regulations on duty-free goods from China have added pressure on Shein’s operations.
The company, last valued at $66 billion in 2023, operates in over 150 countries, offering ultra-low-cost fashion items such as £8 dresses and £10 jeans. However, to proceed with the London listing, Shein must still obtain regulatory clearance from the China Securities Regulatory Commission (CSRC), due to the company’s operational links to China.
Although Shein formally notified the CSRC of its FCA approval, Beijing has yet to authorise the IPO. Sources familiar with the matter, who requested anonymity due to its sensitivity, confirmed that the company awaits the CSRC’s decision. Neither Shein nor the FCA has issued a statement, and the CSRC has not responded to inquiries.
Since relocating its headquarters from Nanjing to Singapore in 2022, Shein remains subject to China’s tightened offshore listing rules. Under a “substance over form” principle, the CSRC holds broad discretion over listings involving companies with substantial operations in China. Shein’s extensive reliance on over 5,800 third-party manufacturers—predominantly based in China—brings it under this regulatory purview.
Approval may also require sign-off from other Chinese regulatory bodies, including the National Development and Reform Commission and the Cyberspace Administration of China, especially concerning foreign investment and cross-border data transfers.
Furthermore, Shein’s operational model—shipping products directly to consumers via air in individually labelled parcels—raises compliance concerns under evolving global trade and data governance frameworks.
While FCA approval marks notable progress, Shein’s IPO ambitions remain entangled in a web of complex regulatory and geopolitical dynamics.
Beyond the listing itself, Shein’s expansion poses wider industry implications. Its ultra-low-cost, high-volume production model—fuelled by consumer demand for fast, disposable fashion—risks deepening environmental degradation and labour exploitation across its supply chain. As scrutiny over its business practices intensifies, Shein’s model stands at odds with growing global expectations around sustainability and ethical accountability.
If the IPO proceeds, it could signal a shift in market priorities—placing profit and dominance above responsible conduct—potentially undermining efforts to reform the fashion industry towards more ethical and sustainable standards.
