TikTok users’ obsession with viral outfits helped Shein to a private valuation of $66bn in its last fundraising. But replicating that figure in the public markets is proving tougher than expected. The fast-fashion group is reportedly considering switching its listing from New York to London. Politically, that makes a lot of sense. The popularity of Shein’s ultra-cheap fashion on social media platforms has been behind its phenomenal growth. It filed confidential paperwork for its initial public offering with the US Securities and Exchange Commission in November.
Getting approval is looking complicated. Chinese companies wanting to list in the US are facing greater scrutiny amid rising geopolitical tensions between the two countries. Shein, founded in China, is no exception.
US regulators are stepping up oversight and subjecting Chinese companies to additional disclosure requirements. Some US lawmakers have gone as far as asking the SEC to block Shein’s listing, saying more information is needed about its operations in China. One lawmaker has called for a probe into Shein’s cotton supply from Xinjiang, where human rights groups claim ethnic minorities are being subjected to forced labour. Shein has denied the claims, saying it has no suppliers in the region.