The online fashion company seeks to move its headquarters from Singapore after the failed attempts to go over in New York and London, with the aim of raising capital.
The Online fashion company Shein Analyze return to Continental Chinafrom Singapore, where it had been installed in 2022 with the goal of facilitating its IPO in Hong Kong. The decision comes after the failed attempts to quote New York and, later, in London.
According to sources cited by The Guardianthe company has already consulted with legal studies about the possibility of creating a matrix in China that Allow local regulations to be complied with and place their shares in Hong Kong, considered its priority financial place.
Failed attempts in New York and London
Shein initially considered going into New York in 2022. However, the company faced regulatory obstacles due to tensions between the United States and China, which led the company to reconsider its plans.
In 2023, Shein reactivated his efforts to quote in the American city. The company submitted a confidential application to the Securities and Exchange Commission (SEC) of the US, with an estimated assessment of up to U $ s90,000 million.
Despite this, this process was affected by the growing bipartisan opposition in the US Congress, which questioned Shein’s work practices, especially in relation to the region of Xinjiang. These concerns led to a hardening of the regulations, further making the possibility of an IPO with that country further difficult.
In the absence of advances and growing political pressure, Shein abandoned his efforts to quote in New York. Subsequently, Shein submitted his application to quote in London, seeking the approval of the Financial Behavior Authority (FCA) of the United Kingdom. The operation, which has been in process for 18 months, found regulatory obstacles that delayed the process.
The initial public offer brochure sent to the Hong Kong bag and China Stock Regulatory Commission (CSRC) He also sought to promote pending authorization in the United Kingdom. Although the British CNMV approved the document, the Chinese authority rejected it due to the management of the risks associated with operations in Xinjiangregion inhabited by the Uigur minority, on which Beijing has received criticism for human rights violations.
According to Chinese legislation, any company with important links in the country must obtain the approval of local authorities before going over, even if your main domicile is abroad, which conditions Shein’s path towards international price.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
