Shein, the ultra-fast fashion giant, is weighing a relocation of its headquarters to mainland China as it seeks to secure regulatory approval for a planned Hong Kong IPO, Bloomberg reported on August 18.
The company, currently domiciled in Singapore, has consulted lawyers about setting up a parent company in mainland China, the report said. The discussions remain preliminary, and there is no guarantee that Shein will proceed with the relocation. Shein has consistently reiterated its intention to go public, with Executive Chairman Donald Tang reaffirming in March that the company is “committed to pursuing an IPO.”
Shift from U.S. and U.K. Plans to Hong Kong
Shein initially explored IPOs in New York and London but failed to secure the necessary approvals from regulators. In particular, the company’s London listing attempt faltered after China’s securities regulator, the China Securities Regulatory Commission (CSRC), withheld approval.
The company’s challenges have extended beyond listing venues. Earlier this month, Italy’s competition authority, the Italian Competition and Market Authority (AGCM), fined Shein €1 million over greenwashing allegations, following similar action in France. These developments underscore the mounting regulatory headwinds Shein faces in the European market.
Given these setbacks, Hong Kong has emerged as Shein’s primary listing option. Securing CSRC’s sign-off has become more critical than ever, and if successful, the listing could rank among Hong Kong’s largest IPOs in 2025.
Founded in Nanjing before relocating to Singapore, Shein remains heavily dependent on China’s vast apparel manufacturing network. For this reason, the CSRC treats Shein as a company with substantial ties to China, even though it is not legally incorporated there. Under CSRC rules, companies with significant connections to China must undergo regulatory review before listing overseas.
According to people familiar with the matter, establishing a parent company in mainland China would allow Shein’s income to be taxed locally, potentially easing regulatory approval. The move could also address Beijing’s tightening oversight of corporate data. Since 2023, Chinese regulators have required companies pursuing overseas IPOs to undergo a cybersecurity review, making compliance a key condition for listing.
If Shein proceeds with establishing a mainland parent company, its current Singapore headquarters and international operations would be reclassified as subsidiaries. The ultimate decision rests with Chinese regulators, and approval of the Hong Kong IPO will mark a pivotal moment for Shein’s global expansion strategy.
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