Shein’s China pivot is a last-ditch bid to rescue its IPO, analysts say

Published Wed, Aug 20 20255:47 AM EDTUpdated Wed, Aug 20 20259:06 AM EDT

Karen Gilchrist @karengilchrist1 @_karengilchrist

Key Points

Analysts suggest Shein's reported shift of its headquarters back to China could mark a final effort by the retailer to keep its embattled IPO on track.
"After years of trying to position itself as a global brand rather than a Chinese fashion company, it's back to square one," Perris Lee told CNBC.
The company reportedly confidentially filed for an initial public offering in Hong Kong last month, shifting its aspirations away from London.

Shein's potential return of its headquarters to China may be a last-ditch effort to keep its embattled initial public offering on track following a series of roadblocks, according to analysts. The Singapore-headquartered but Chinese-founded online retailer is considering moving its base back to China in a bid to persuade Beijing authorities to approve its long-awaited public listing, Bloomberg reported Tuesday, citing sources familiar with the matter. Shein did not respond to CNBC's request for comment on the reports. It comes after the company confidentially filed for an initial public offering in Hong Kong last month, according to a Financial Times report , shifting its aspirations away from a London listing. Melanie Tng, a Singapore-based private capital analyst at PitchBook, said the proposed relocation was unsurprising given that Shein now appears set on IPO-ing in the city-state. After years of trying to position itself as a global brand ... it's back to square one. head of APAC equity capital markets at Mergermarket Perris Lee "For companies like Shein that are operating at the intersection of consumer, cross-border, and digital commerce, Hong Kong is arguably the only viable major offshore listing venue left," Tng said via email. Shein has faced an uphill battle in its IPO ambitions , last year shifting its attention from a New York listing to London but nevertheless continuing to face pushback from regulators. "Re-domiciling could therefore be a strategic move to signal regulatory alignment and improve listing visibility," Tng added. The retailer moved its headquarters to Singapore in 2022 in a bid to look more international ahead of its listing efforts. However, given its heavy sourcing and operations in China, any listing must by approved by the China Securities Regulatory Commission (CSRC), making Hong Kong a more straight-forward option than any other city, including, for instance, Singapore. "Hong Kong stands out as the only offshore listing venue that aligns with both Chinese regulatory expectations and international capital access," Anand Kumar, associate director at Coresight Research, told CNBC via email. "Establishing a parent company or headquarters in mainland China could further smooth China Securities Regulatory Commission (CSRC) approval, bolster trust among Chinese institutional investors and address growing regulatory demands for local governance, data transparency and tax compliance." Perris Lee, head of APAC equity capital markets at Mergermarket, meanwhile noted that a potential shift of Shein's headquarters back to mainland China suggested that the business had exploited all of its other options. "After years of trying to position itself as a global brand rather than a Chinese fashion company, it's back to square one. Worse, this latest consideration comes after its valuation has taken a nosedive," Lee told CNBC via email. Valued at $100 billion three years ago, Shein has since seen its valuation tumble. It now faces pressure from investors to cut it further to about $30 billion , Bloomberg reported in February. The fast-fashion retailer meanwhile has faced immense scrutiny over its supply chain and allegations over the use of forced labor to produce its ultra-low cost products — claims the company vehemently denies. "For an eventual Hong Kong IPO, the real challenge would be public relations," Lee said. "The company and the deal advisors will need to convince investors that Shein will be worthy of the asking valuation at the time of listing following two ill-fated IPO attempts abroad, not to mention controversies surrounding fast fashion itself." Another boon for Hong Kong A Shein listing in Hong Kong would nevertheless mark a boon for the the semi-autonomous territory, which has emerged this year as one of the top listing locations globally . New listing volumes on the Hong Kong Stock Exchange jumped around eight times to $14 billion in the first half of 2025, from just $1.8 billion in the same period last year, according to Dealogic. PwC now predicts that the market will close out the year as the world's biggest venue for listings. These have included a number of mainland China-traded companies seeking secondary listings in Hong Kong, for instance battery maker Contemporary Amperex Technology . "A Shein IPO in Hong Kong will offer a different flavor to the IPO market, as it would be a first-time listing," Lee said, adding that a fashion listing would offer a novel dimension to Hong Kong's public markets. Pitchbook's Tng attributed the uptick to a rebound in investor sentiment and greater streamlining of listing approvals for sectors such as tech and healthcare. That compares to London, which has been battling a lackluster IPO market following a string of delistings and defections. Fundraising from London listings slumped to at least a three-decade low in the first half of this year, according to Dealogic. Coresight Research's Kumar also noted that an initial Hong Kong listing could also provide a gateway to a later dual listing in either London or New York, if pulled off successfully. "Ultimately, a well-executed Hong Kong debut could stabilize Shein's valuation and renew investor confidence — but only if it navigates regulatory, reputational and operational risks with equal agility," Kumar said.