Why China-founded online fast-fashion retailer Shein is looking to go public in London

Online fast-fashion retailer Shein’s reported plan to go public in London is a result of mainland China’s changing venture capital landscape, rising tensions between Washington and Beijing, and the relative decline of Hong Kong as an international financial centre, according to people familiar with the company’s listing discussions.

Shein, founded in 2008 by publicity-shy Chinese entrepreneur Sky Xu Yangtian, is expected to file an application with UK regulators in the coming days for an initial public offering (IPO) in the London Stock Exchange, according to British media reports this week. Shein has not commented publicly on these reports.

The novelty of a Chinese internet company floating its shares in the UK could make Shein a trailblazer for other mainland tech firms, as geopolitical tensions between Beijing and Washington remain high and Hong Kong continues to wrestle with poor liquidity, according to the people who spoke on condition of anonymity for discussing a matter that the company has not yet announced.

That reported move appears to reflect pressure from Shein’s investors, including Abu Dhabi sovereign wealth fund Mubadala, General Atlantic and HongShan.

Competition in cross-border e-commerce activities has also intensified. Shein’s primary competition includes PDD Holdings’ Temu, Alibaba Group Holding’s AliExpress and Amazon.com. E-commerce giant Alibaba owns the South China Morning Post.