On April 11, fast fashion giant Shein received preliminary approval from the UK’s Financial Conduct Authority (FCA) to proceed with its initial public offering (IPO) on the London Stock Exchange. This marks a significant step forward for the company, which shifted its focus to London after abandoning plans for a New York listing last year.
UK Approval Granted, But China’s Final Verdict Pending
The FCA’s greenlight indicates that Shein’s IPO prospectus meets the regulator’s disclosure standards. However, this is only a preliminary approval—should there be any substantial updates or changes to the prospectus, a resubmission and fresh approval may be required. One source familiar with the matter noted, “The FCA’s preliminary approval doesn’t come with a fixed expiration, but material changes would trigger a new review process.”
Despite this progress, Shein still needs regulatory clearance from Chinese authorities, including the China Securities Regulatory Commission (CSRC). While some reports suggest that the CSRC has implicitly approved the change in listing venue, final approval is said to rest with higher-level bodies such as the State Council.
Trump’s Trade Policies Cloud IPO Prospects
What complicates the picture further is the recent escalation in U.S.-China trade tensions. In April 2025, U.S. President Donald Trump signed an executive order abolishing the de minimis rule, which had allowed shipments under $800 from China and Hong Kong to enter the U.S. duty-free. This system has long served as the foundation for cross-border e-commerce platforms like Shein, Temu, and Amazon, enabling low-cost direct shipping to U.S. consumers.
Additionally, the Trump administration has proposed tariffs ranging from 90% to 145% on all imports from China. These measures could upend Shein’s business model, particularly in the U.S.—its largest and most important market.
Amid rising political and economic uncertainty, Shein’s IPO, initially scheduled for the first half of 2025, is now expected to be delayed. The company, which was valued at $66 billion during a 2023 fundraising round, is now facing pressure from some investors to lower its valuation to the $30 billion range.
Ethical Concerns and FCA’s Position
Another critical issue surrounding Shein’s IPO is the ethics of its supply chain. Allegations of forced labor in China’s Xinjiang region have sparked international concern, and some UK politicians have called for blocking the company’s listing.
The FCA is believed to have granted preliminary approval on the basis that such risks were adequately disclosed in Shein’s prospectus. However, the FCA does not verify the accuracy of the information submitted. If any misleading or incomplete information is later discovered, Shein could face investor lawsuits or enforcement actions from regulators.
In response, Shein has repeatedly stated that it maintains a zero-tolerance policy toward both forced labor and child labor within its supply chain.
Shein is steadily making progress toward a London IPO, but its path forward hinges on whether it can overcome two major hurdles: mounting geopolitical tensions and a business structure increasingly scrutinized for ethical transparency.
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