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Shein debuts in Hong Kong after years of China regulatory hurdles
Reuters reports Shein secured approval for the Hong Kong IPO after founder Sky Xu increased outreach to Chinese authorities and backed investment and local development initiatives.
Shein’s market debut on Tuesday will take place in Hong Kong, rather than New York or London, underscoring the company’s long effort to align its listing plans with regulators in China, according to Reuters. Reuters reports that Shein first attempted to go public in New York and then in London, but sources said it could not obtain approval from Chinese authorities, including the securities regulator that oversees foreign-registered companies with significant operations in China. After pivoting to a Hong Kong IPO in the first half of 2025, the company’s founder Sky Xu became more personally involved in regulatory and capital markets outreach in China, Reuters said. The outlet reports that Xu also made business appearances more focused on Shein’s manufacturing base, including a February speech in the Guangdong region where he pledged $1.5 billion of Shein investment, and the company’s efforts to highlight local commitments helped persuade Chinese authorities that Shein remained a Chinese company at its core. Reuters adds that Shein inaugurated a research and development center in Nanjing earlier this year. Reuters further reports that Guangdong officials promoted Shein as an employer and domestic jobs creator with central government authorities, a message the sources said may have resonated as China deals with rising unemployment. Shein and the China Securities Regulatory Commission did not respond to Reuters requests for comment.