China.- Shein is considering returning its headquarters to China to list in Hong Kong after trying to do so in London and New York.

MADRID, 19 (EUROPA PRESS)

Shein is considering returning its headquarters to China from Singapore, where it moved in 2022 to facilitate its IPO in Hong Kong after unsuccessful attempts to do so in New York and, subsequently, London.

According to The Guardian, the company has already consulted with law firms about the possibility of creating a parent company in mainland China with a view to making Hong Kong its preferred financial center for trading shares and raising capital.

Until now, press reports in July suggested that Shein was opting for the Asian city to pressure the UK's Financial Conduct Authority (FCA) to approve its listing on the London stock exchange, where it applied to debut 18 months ago, but with limited success due to regulatory hurdles.

Shein submitted its initial public offering (IPO) prospectus to the Hong Kong Stock Exchange and the China Securities Regulatory Commission (CSRC) to energize the case opened in Great Britain.

The multinational obtained approval for the document from the British CNMV a few months ago, but it was not accepted by its Chinese counterpart.

The reason for this lies in the language used when assessing risks, specifically regarding activities in the Xinjiang region, home to the Uyghur minority. Beijing has been repeatedly accused of violating the human rights of this ethnic group.

Chinese law requires companies with significant ties to the country to obtain its approval to list publicly anywhere in the world, even if they are domiciled abroad.