Shein reportedly weighs moving back to China to gain approval for Hong Kong IPO

Shein is reportedly contemplating relocating its headquarters from Singapore back to China in an effort to secure the necessary approvals for its Hong Kong initial public offering (IPO). According to a Bloomberg report, the fast-fashion giant has engaged legal counsel to explore the possibility of establishing a parent company in mainland China, although there is no certainty that these discussions will lead to definitive actions. The company, which sources a considerable portion of its products from China, previously filed confidentially for an IPO in Hong Kong last month, as indicated by the Financial Times. This move follows a series of setbacks regarding its IPO plans in London, which were initiated over a year ago but delayed due to challenges in obtaining regulatory approval, as reported by Reuters. A London listing was anticipated to bolster Shein's credibility in international markets and provide access to a robust network of Western investors. However, the company has encountered obstacles in these markets this year, particularly after former U.S. President Donald Trump revoked a crucial tariff exemption that had allowed Shein to maintain competitive pricing on smaller shipments from China. Additionally, legislators in other Western countries are exploring similar regulatory changes that could impact the company's operations. As of now, Shein has not provided any comments regarding these developments when approached by CNBC.