Shein, the China-founded fast-fashion giant, is reportedly set to file a draft prospectus confidentially for an initial public offering (IPO) in Hong Kong, potentially as early as this week, according to a report in Reuters that quotes three sources familiar with the matter. The move, as per Reuters exclusive report, could make Shein one of the largest IPOs in Hong Kong this year. The IPO also reportedly marks a rare departure from the city’s norm of public IPO filings and follows Shein’s failed listing attempts in the U.S. and London.
What is confidential IPO filing
The confidential filing, expected by Monday (June 30), would allow Shein to shield sensitive financial and operational details during the regulatory review process, a practice more common in the U.S. than in Hong Kong. This approach requires a waiver from the Hong Kong stock exchange’s standard listing rules, which typically mandate public disclosure of IPO documents. The exchange may grant such exemptions for secondary listings or spinoffs from companies listed on recognized overseas exchanges like the NYSE or Nasdaq. Shein, however, is pursuing a primary listing, making the confidential approach unusual for the city, where high-profile IPOs like Xiaomi and Meituan involved public filings.Shein, valued at $66 billion in its 2023 pre-IPO fundraising round, must secure approval from the China Securities Regulatory Commission (CSRC) before proceeding with the Hong Kong IPO. The company will need to file with the CSRC within three days of submitting its Hong Kong application, in line with Chinese regulations for offshore listings. It remains unclear whether Shein has received preliminary approval from the CSRC. The Hong Kong stock exchange and Shein declined to comment, and the CSRC did not respond to inquiries.
How Shein has been impacted by the US-China trade war
The filing comes as Shein navigates challenges from the U.S.-China trade war, with new U.S. tariffs on Chinese goods and the end of duty-free treatment for e-commerce parcels impacting its largest market. Shein, which sells low-cost apparel like $5 dresses and $10 jeans in 150 countries, shifted its headquarters to Singapore in 2022 but relies on a network of 7,000 Chinese suppliers, subjecting it to Beijing’s IPO oversight. The company has also faced allegations of forced labor in its supply chain, which it denies, stating it prohibits suppliers from using Chinese cotton in U.S.-bound products.
When Shein’s attempt to list in the New York exchange failed
Shein’s pivot to Hong Kong follows an unsuccessful bid to list in the U.S. in late 2023. The company filed for a New York IPO but failed to secure CSRC approval, Reuters previously reported. The attempt was further complicated by U.S. regulatory scrutiny and trade tensions, including accusations from lawmakers and activists that Shein’s supply chain involves forced labor in Xinjiang, a claim the company has rejected. The U.S. ban on imports linked to forced labor added pressure, and Shein’s valuation dropped by a third from 2022 to 2023 amid these challenges. After the U.S. listing stalled, Shein explored a London IPO but was unable to gain Chinese regulatory approval, prompting the shift to Hong Kong as a more viable listing venue.A successful Hong Kong IPO could bolster the city’s status as a global fundraising hub, which saw $12.8 billion in IPOs and secondary listings in the first half of 2025. Shein’s listing, however, hinges on navigating regulatory hurdles and addressing concerns about its supply chain and the impact of U.S. tariffs, which could influence its final valuation.
