Shein files for Hong Kong IPO in hopes of salvaging London listing: FT report

Online fast fashion giant Shein has been struggling to secure apvals for a London listing

And Chinese regulators have failed to agree on the language to be used in the risk disclosure section of the company's spectus

The closure of the U. 's de minimis loophole for low cost goods has only added to the company's woes

Temilade Adelaja | ReutersOnline fast fashion giant Shein has confidentially filed for an initial public offering in Hong Kong in a bid to apply pressure on U

Regulators and accelerate its long embattled listing ambitions, according to the Financial Times

The Chinese-founded, Singapore-based retailer privately submitted a draft spectus last week with the Hong Kong exchange (HKEX) and courted the apval of the China Securities Regulatory Commission (CSRC), two sources familiar with the matter told the newspaper

The HKEX said it does not on individual companies when ed by CNBC

Financial Conduct Authority and London Stock Exchange declined to when ed by CNBC, while the CSRC did not immediately respond

Shein previously filed to list in London around 18 months prior, but has struggled to receive regulatory apval and in May reportedly shifted its focus to Hong Kong

And Chinese regulators have so far failed to agree on the appriate language for the risk disclosure section of the company's spectus

Watch now2:4602:46Shein reportedly files for Hong Kong IPO in bid to lure LondonSquawk Box EuropeThese visions relate to Shein's supply chain exposure in China's Xinjiang region, which has been heavily scrutinized over alleged human rights abuses against its indigenous Uyghur population

Chinese authorities have denied the claims. 's FCA apved a version of Shein's spectus earlier this year but the draft was not accepted by the CSRC, which has grown stricter on how companies describe the risks of operating in China

A time to pivotA London listing had been seen as a boon for the nearly 17-year-old Chinese-founded company, viding international legitimacy and access to a deep and mature pool of Western investors

Shein's high-file listing was also seen as ly to vide a much needed boost to the U. 's lackluster IPO market after a string of delistings and defections

However, analysts voiced skepticism over whether Chinese apval would force the U

Regulator's hand to grant similar concessions. "Even if it has been apved by Chinese Authorities, apval by the FCA would still need to go through all its cesses, so a London listing still has a number of hurdles," Susannah Streeter, head of money and at Hargreaves Lansdown, told CNBC by. "The Financial Conduct Authority has a responsibility to tect investors against issues which could be detrimental to their interests," she continued

James Alexander, CEO of the U

Sustainable Investment and Finance Association, agreed that London must "uphold strong governance standards," adding that "any erosion of this would be detrimental to investors. "Nevertheless, Streeter suggested that continued pressure from the U

Regulator could help accelerate changes within the company. "ESG laggards come with high ESG risks, however there is an argument that investment opportunity lies in transformation

A Shein listing could make the firm more transparent and accountable to holders who could engage with the firm to imve standards," she said

Shein has faced an uphill battle in its listing ambitions, last year shifting its attention from a New York listing to London after facing continued pushback on such issues from U

Meanwhile, concern over its commercial practices mpted an EU investigation, which in May found the company in breach of consumer tection laws, including the use of fake discounts, pressure selling and misleading shoppers over sustainability claims

The closure in May of the U. 's de minimis loophole for low-cost goods — and possible similar measures by the EU and the U. — have only added to the company's woes.