Shein Gets Chinese Regulatory Approval for Hong Kong IPO

Chinese fast-fashion giant Shein has secured approval from the China Securities Regulatory Commission (CSRC) for its long-awaited initial public offering on the Hong Kong Stock Exchange, marking a major milestone after failed attempts to list in New York and London. The CSRC accepted Shein’s overseas listing filing on July 10 through its domestic operating entity, Guangzhou Shein International Import & Export Co., clearing the way for what could be one of the most anticipated listings of the year.

Context

Shein, founded by Chinese-born entrepreneur Sky Xu (Xu Yangtian) in 2012, has grown into the world’s third-largest fashion retailer by sales, surpassing Zara, H&M, and Uniqlo in 2024, according to Caixin. The company operates a highly efficient supply chain based in Guangzhou, China, selling ultra-low-priced clothing in approximately 150 to 160 countries. Its 2025 revenue reached $34.5 billion, with gross merchandise volume rising 22.7% year-on-year to $67.5 billion, per a Nomura Securities report.

Key Developments

Shein plans to issue up to 341.6 million ordinary shares for listing on the Hong Kong Stock Exchange. The company is targeting a valuation of $40 to $50 billion — down sharply from its $100 billion peak in 2022 but still positioning it as one of the largest consumer retail listings in recent years. The Hong Kong Exchange Listing Committee hearing is scheduled for July 16, and if approved, listing could occur in September or October 2026, according to sources cited by Inside Retail Asia/Reuters.

Shein’s IPO journey has been anything but straightforward. The company first filed for a US IPO in New York in November 2023 but faced intense opposition from US lawmakers over forced labor allegations and supply chain transparency issues. It then pivoted to London in late 2024, where Britain’s Financial Conduct Authority approved a draft prospectus, but the CSRC withheld its approval, effectively blocking the listing. The Hong Kong attempt represents the company’s third bid to go public.

In a significant leadership development, Executive Chairman Donald Tang is stepping down as the IPO nears completion, according to Inside Retail Asia/Reuters. Tang, a Chinese-American billionaire and former Bear Stearns Asia CEO, has served as Shein’s “Western face” since 2023, liaising with politicians, regulators, and investors globally. Founder and CEO Sky Xu will assume the chairmanship and lead investor roadshows ahead of the listing.

Analysis

Shein’s long and tortuous path to market highlights how geopolitical tensions have complicated overseas listings by Chinese-linked companies. As Global Times reported, the approval signals China’s support for its private sector and platform economy. Cui Fan, a professor at the University of International Business and Economics, told the state-affiliated newspaper that the choice of Hong Kong “further demonstrates the company’s determination to deepen its roots in China and grow with China.”

However, Beijing has viewed Shein as “politically sensitive,” according to an anonymous source with direct knowledge cited by Reuters. The company has faced controversies including a sex doll scandal in France, reports of poor labor practices at its supplier factories, and over €200 million in fines from French regulators for consumer data misuse and misleading discounts. The European Commission opened a formal investigation into the company in February 2026 over the sale of illegal products.

Sheng Lu, professor of fashion and apparel studies at the University of Delaware, noted that rather than reducing its China exposure as Western fashion companies have been doing, “Shein continued to expand and strengthen its supply chain presence in China,” as reported by Inside Retail Asia.

A successful Shein listing would be a significant boost for Hong Kong, which has re-emerged as one of the world’s busiest listing venues in 2026. The CSRC has approved more than 180 IPOs over the past 12 months, and companies raised approximately $36.6 billion through Hong Kong IPOs in 2025, more than double the prior year, according to Chosun Biz.

What’s Next

All eyes are now on the July 16 listing committee hearing, which will determine whether Shein can proceed to the next stage of the offering process, including investor roadshows and book-building. The company must complete its offshore listing within 12 months of the filing confirmation or update its filing materials. Key questions remain about the final IPO valuation, the size of the stake to be sold, and how ongoing EU regulatory actions and reputational challenges will affect investor sentiment. Shein’s eventual debut will serve as a bellwether for Chinese cross-border e-commerce companies seeking access to international capital markets.