Shein Set for Hong Kong Listing Hearing on Thursday
Shein is set to face the Hong Kong stock exchange’s listing committee on Thursday, according to Reuters report on Monday, citing sources familiar with the matter. This is the final procedural step before the fast-fashion group can finally go public after three years and two failed attempts across different continents.
Beijing Approval and Listing Committee Gate
The hearing follows approval from the China Securities Regulatory Commission last Friday, clearing Shein to issue up to 341.6 million H shares with a 12-month listing timeline. This was the crucial step, as per Reuters, after initial plans in New York and London collapsed due to regulatory pressures.
Timing and Valuation Speculations
A September or October listing is the assumed timeframe, though nothing official has been confirmed by the company. The valuation remains a contentious issue, with Shein's worth dropping from around $100bn four years ago to a reported range of $40bn to $50bn, with some shareholders pushing for a lower target closer to $30bn.
Political and Trade Pressure
The recent changes in trade policies on both sides of the Pacific, including the US ending the de minimis exemption for Chinese imports and the EU abolishing its own exemption, have significantly impacted Shein's business model. These policies have led to increased tariffs and a decline in user numbers for competitors like Temu.
Regulatory Scrutiny
The UK’s Competition and Markets Authority has been investigating both Shein and Temu since 2024 on consumer protection and pricing transparency grounds, adding another layer of regulatory pressure.
Conclusion
Shein's listing in Hong Kong takes place within a complex backdrop of political protections at home and structural challenges abroad, with the regulatory file also not devoid of scrutiny.