Shein’s pursuit of a London listing has placed the UK Financial Conduct Authority under intense scrutiny, lawyers say, as the regulator looks to balance Britain’s reputation for strong corporate governance with its appeal as a place to do business while weighing its approval.
The online fashion retailer, which was founded in 2008 in China but is now Singapore-based, filed confidential paperwork with the FCA in recent weeks in a sign that its plans for a UK initial public offering are progressing.
While a London listing of Shein, which was valued at $66bn in its most recent funding round, would be a coup for the City, it would also pose reputational risks. The company has faced allegations of forced labour in its cotton supply chain and of having lax environmental standards, both of which it denies.