Approve our IPO or watch us walk

Fast-fashion giant Shein has confidentially filed for an IPO in Hong Kong, a strategic move widely seen as an attempt to pressure UK regulators into approving its long-stalled London listing. The Singapore-headquartered retailer, originally founded in China, has faced a complex web of regulatory hurdles over the past three years, with geopolitical sensitivities and supply chain scrutiny at the heart of the delays.

Despite receiving approval from the UK’s Financial Conduct Authority (FCA) earlier this year, Shein’s London IPO remains in limbo due to unresolved issues with China’s Securities Regulatory Commission (CSRC). The sticking point? Language in the risk disclosures, particularly around Shein’s supply chain exposure to Xinjiang - a region fraught with allegations of human rights abuses.

Shein’s pivot to Hong Kong is not just a backup plan; it’s a calculated tactic to keep London in play. With IPO activity in London at a 30-year low, losing Shein’s potential £50bn+ float would be a significant blow to the UK market. Yet, political resistance remains strong. MPs and fund managers have raised concerns over labour practices and transparency, with some calling for deeper scrutiny before any listing proceeds.

Shein is not alone in reconsidering London. Other high-profile IPOs, including Arm Holdings and Cava Group, have opted for New York over London, citing regulatory clarity and investor appetite. This trend underscores the need for the UK to modernise its listing regime and better accommodate global businesses.

In this climate, strategic communications play a pivotal role. For Shein, clear, proactive messaging around supply chain ethics, sustainability, and corporate governance is essential to rebuild trust and credibility. Navigating political sensitivities while maintaining investor confidence requires not just regulatory compliance but reputational resilience.

Ultimately, Shein’s IPO saga is a litmus test for London’s competitiveness as a global financial centre. Whether through a dual listing or a regulatory breakthrough, the outcome will shape perceptions of the UK’s openness to international business for years to come.