How Shein had to make peace with China to finally go public

Shein, the fast-fashion online retailer, is set to raise US$1.7 billion in its IPO on Tuesday, September 1, 2025, at a valuation of US$26.5 billion. However, unlike its earlier attempts to go public in New York and London, Shein will debut in Hong Kong, reflecting its deepened ties to its Chinese roots.

After years of trying to position itself as a global company, Shein finally decided to list in Hong Kong instead. The company's founder, Sky Xu, sought to build relationships with Chinese authorities and became more involved in regulatory and capital markets outreach in China. He also pledged US$1.5 billion of Shein's investment and spoke at a business forum in Guangdong, pledging to deepen the company's roots in the region.

The Hong Kong listing was facilitated by Shein's efforts to emphasize its Chinese identity. For instance, Guangdong provincial officials promoted the company as a prominent employer and job creator, which resonated with China's need to address rising unemployment. Shein also highlighted that it does not sell cheap products in China and does not contribute to the cut-throat competition among e-commerce platforms. Instead, the company argued that its overseas business benefits the Chinese economy by bringing in dollars.

Shein's efforts to list in the West faced opposition from Chinese authorities and US lawmakers. They called for the Securities and Exchange Commission to ensure that Shein did not use forced labor before it could list. This pressure softened Chinese regulators' perspective on the company, viewing it as a national champion deserving of support in an increasingly hostile external environment.