Shein advances HK IPO preparations after CSRC filing approval

Shein International Holdings Ltd. received filing approval from the China Securities Regulatory Commission for its Hong Kong initial public offering, people familiar with the matter said, advancing toward one of the year's largest listings.

"The CSRC approval is a critical milestone that removes the primary regulatory hurdle," Kevin Ip, an analyst covering HK listings, said. "Shein can now proceed with the formal listing process on the Hong Kong exchange."

The fast-fashion retailer and its advisers may seek to launch the IPO as soon as in the coming months, the people said, asking not to be identified discussing private information. The company is considering raising a few billion US dollars, with the final amount depending on the valuation. Hong Kong's IPO market has raised almost $35 billion in first-time share sales this year.

Shein's valuation has dwindled from the $100 billion it fetched four years ago, with shareholders pressing for a valuation of about $30 billion. The company unsuccessfully tried to list in the US two years ago amid scrutiny of its supply chain and labor practices, and abandoned a London listing after Chinese regulators withheld their approval. Founder Xu Yangtian has pledged to pour more resources into Guangdong province, home to a sprawling network of manufacturers that produce ultra-low-cost clothing.

Regulatory and Competitive Headwinds

The approval comes as Shein faces mounting regulatory pressure in Europe. France has imposed fines totaling about $240 million, including $26 million in June over product traceability and environmental labeling issues. The European Union this month introduced a roughly $3.50 fee on low-value ecommerce imports from outside the bloc, while French lawmakers have approved legislation targeting ultra-fast-fashion producers with fines and advertising restrictions.

Shein's BHV Marais concession in Paris, opened less than a year ago as a flagship European presence, is closing before Christmas after the department store's new owner called the partnership a "strategic error." Around 100 brands left BHV Marais following Shein's arrival.

The company also faces intensifying competition from PDD Holdings Inc.-owned Temu in key markets including the US and Europe, while tariff-induced price increases have dented consumer demand.

What's at Stake

The pricing will give Shein an enterprise value of about $30 billion, a steep discount to its peak but still one of the largest consumer IPOs in Hong Kong this year. First-day trading will test institutional demand for a company that has spent years playing down its Chinese roots while navigating regulatory scrutiny across multiple jurisdictions. Shein's backers include IDG Capital, Mubadala Investment Co., Tiger Global Management and HSG.

This article is for informational purposes only and does not constitute investment advice.