BRIEF: Shein considers move back to China to smooth way for Hong Kong listing

After experiencing setbacks in its U.S. and U.K. listing plans, fast-fashion e-commerce platform Shein is reportedly considering moving its headquarters from Singapore back to China in a bid to secure regulatory approval for a planned Hong Kong IPO.

Shein is currently registered in Singapore and has sought legal advice on creating a parent company in China, people familiar with the matter told Bloomberg. Discussions are still preliminary and the company cannot guarantee the move will proceed, the report said.

Founded in Nanjing, Shein shifted its headquarters to Singapore in 2021 to present itself as a global company and downplay its Chinese origins. After failing to obtain regulatory approval for listings in New York and London, the company reportedlyfiled a recent confidential application to list in Hong Kong.

Despite being based outside China, the company remains subject to Mainland regulators since the China Securities Regulatory Commission (CSRC) requires all companies with substantive ties to the country to undergo a review before listing anywhere, even if they are based elsewhere.

The potential relocation could improve Shein’s chances of securing CSRC approval, partly because it would subject the company’s revenue to Chinese taxation. It would also give Chinese authorities greater oversight of Shein’s vast consumer data. Chinese regulators have required companies seeking overseas listings to undergo data security reviews since 2023.

By Lee Shih Ta

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