Fast Fashion Giant Shein Shifts to Hong Kong IPO but No Timeline Set

According to Bloomberg, fast fashion giant Shein Group Ltd. has received approval from Chinese regulatory authorities to proceed with its planned initial public offering (IPO) in Hong Kong, marking a significant milestone in its years-long pursuit of going public.

The report states that Shein plans to sell up to 341.6 million H-shares in its Hong Kong IPO.

This shift to Hong Kong comes after Shein's previous attempts to list in the U.S. and London were both derailed. Two years ago, its U.S. listing plan was shelved due to intense scrutiny over supply chain and labor practices. Subsequently, its effort to pivot to London failed as Chinese regulators did not grant approval.

Although Shein relocated its headquarters to Singapore in 2021 in an attempt to downplay its Chinese ties, Chinese regulations stipulate that any company with substantial connections to China must undergo regulatory review before listing overseas, regardless of its place of registration.

To secure approval, Shein has adjusted its strategy. Founder Chris Xu has pledged to commit more resources to Guangdong Province, the core hub of Shein’s vast and low-cost supply chain network.

During the IPO preparation, Shein has faced pressure from a sharply reduced valuation. Four years ago, the company was valued at $100 billion, but due to changing market conditions, tariff-driven price increases, and fierce competition from Temu, the e-commerce platform under Pinduoduo, its valuation has now dropped to around $30 billion. The Hong Kong IPO is expected to raise several billion dollars, with the final amount dependent on the valuation.

Despite Hong Kong's stock market declining by about 6% this year, its IPO market is showing signs of recovery, having raised nearly $35 billion so far—offering Shein a potential window.

Shein’s backers include prominent institutions such as IDG Capital, Mubadala Investment Co., Tiger Global Management, and Sequoia Capital China (HSG). However, there is still no confirmed listing timeline, and the plan could face further delays if regulatory reviews do not progress as expected.