If Liam Byrne—a British Labour Party politician who leads parliament’s business and trade committee—gets his way, Shein might need to redirect its planned IPO float to Hong Kong or its home base in Singapore. He is calling for the U.K. government to ban imports made in the Xinjiang region in China, according to the Financial Times. That kind of legislative change will result in greater intensive scrutiny in the supply chain, and ultimately on producers such as Shein over alleged use of forced labor.
Xinjiang is the Chinese region with links to the exploitation of Uyghurs and other Muslim ethnic groups via forced labor. The evidence of crimes against humanity are widely documented.
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Even those connected to the fast-fashion firm end up getting pulled into Shein controversies.
Last month, Italy launched a greenwashing probe into Shein. The Italian antitrust watchdog is probing Infinite Styles Services Co., a Dublin-based operation that manages Shein’s online presence. The probe’s focus is over the possibility of misleading sustainability claims connected with Shein’s clothing.
Last month, Italy launched a greenwashing probe into Shein. The Italian antitrust watchdog is probing Infinite Styles Services Co., a Dublin-based operation that manages Shein’s online presence. The probe’s focus is over the possibility of misleading sustainability claims connected with Shein’s clothing.
And in August, David Schwimmer, the leader of the London Stock Exchange Group, found himself pushing back on allegations that the Exchange had lowered its standards to court Shein so it could switch course from the U.S. to the U.K. for its flotation.
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Shein initially planned to file its IPO in the U.S., but drew scrutiny from Washington lawmakers, who urged the Securities and Exchange Commission to block the firm due to concerns over ties to the Chinese government and alleged use of forced labor in its supply chain.
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[Given the scrutiny in the UK], the most likely scenario could be a listing on the Hong Kong Stock Exchange.
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But how a Hong Kong listing would fare also remains a big question mark. Hong Kong isn’t exactly the go-to choice for companies aiming to go public. Exchanges elsewhere, such as the U.S. or London, are seen as more active, and therefore get to attract more investors.