28 February 2024 , 11:17
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Chinese fashion giant Shein is considering a stock market listing in London.
This would be a major boost for the struggling London Stock Exchange, which has seen fewer new companies listing and others shifting their focus to New York. According to Bloomberg, Shein is considering a UK listing because of worries about strict rules in the US.
However, no final decision has been made and the company still might choose a New York listing. But there are reports that the company thinks the US Securities and Exchange Commission might stop an IPO (initial public offering) in the country.
Sky News also reported that Chancellor Jeremy Hunt met with Shein chairman Donald Tang to try and convince the firm to list in London. Last year, Shein started the process to list in New York, working with advisers from Goldman Sachs, JP Morgan and Morgan Stanley.
Danni Hewson, who is the head of financial analysis at AJ Bell, said: "Public listing will put a spotlight on its supply chain and the ethical and environmental issues that surround fast fashion generally."
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She added that the clothing retailer has been asked by lawmakers to prove it does not use forced labour in the making of its products. It has also been accused of copyright infringement, which presents another risk to investors.