economy
The London stock market dodged a bullet with Shein
China’s fashion giant will list in Hong Kong with a shrunken price tag – and big questions over its business model
TL;DR
- Shein, a major fast-fashion retailer founded in China, has chosen to list in Hong Kong instead of London.
- The company faced scrutiny over labor practices in its supply chains and potential tax advantages on low-value imports.
- London's Financial Conduct Authority and the Labour government had shown openness to Shein's listing, but resistance emerged.
- Shein's valuation has shrunk considerably, indicating investor concerns about its business model and tax practices.
- London's financial market is seen as having avoided a potential reputational risk by Shein's decision to list elsewhere.