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

Shein made its market debut in Hong Kong on Tuesday, reflecting the fast-fashion online retailer's journey to embrace its Chinese identity. Despite initially aiming for a public listing in New York and London, Shein faced opposition from Chinese authorities due to its operations in the country. The company's founder, Sky Xu, sought to build ties with Chinese regulators and increased personal involvement in regulatory and capital markets outreach.

Xu even spoke at a business forum in Guangdong, pledging $1.5 billion in investment to build Shein's smart supply chain system. Shein's efforts to highlight its Chinese roots, such as inaugurating a research and development centre in Nanjing and emphasizing its role in creating domestic jobs, helped persuade Chinese authorities to approve the Hong Kong IPO.

The company is set to raise $1.7 billion with a valuation of $26.5 billion, despite initially touting itself as a global player.