How Shein had to make peace with China to finally go public
It is set to raise US$1.7 billion in its IPO at a valuation of just US$26.5 billion
Shein, the fast-fashion online retailer, has struggled to go public in its desired markets. The company attempted to list in New York and London previously but failed due to Chinese authorities' concerns. In 2025, Shein decided to go public in Hong Kong, a move that symbolizes its embrace of its Chinese roots. The company's founder, Sky Xu, has been working closely with Chinese authorities and regulators to build ties and showcase the company's significance to the Chinese market.
Shein has invested heavily in its manufacturing base in China, opened a research and development center in Nanjing, and highlighted its commitment to Guangdong province as a major employer. The company also downplayed its ultra-cheap products in China and focused on its overseas business, arguing it brings dollars to the Chinese economy.
Despite facing opposition from Chinese authorities and pressure from US-China trade tensions, Shein's decision to debut in Hong Kong makes the most sense, as corporate identity and geopolitical alignment are increasingly important in determining a company's listing venue.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
