Analysts say the planned Hong Kong list to take advantage of the broader capital group

Written by Scott Murdoch

Analysts said that SYDNEY (Reuters) -Hong Kong’s planned menu will help the rapid online retail seller to avoid the sharp scrutiny of investors in supply chains while taking advantage of capital from the main mainland and investors in the emerging market.

The company, which is based in Singapore, has transferred its ambitions in the public market to Hong Kong after it won the victory with the regulatory approval of Chinese Securities to move forward in the first public offering in London, according to Reuters last month, citing sources.

Although the list, if it succeeds, will be a big boost for Hong Kong, this step will lead to a cloud for the company’s efforts in recent years to gain legitimacy as a global company, not a Chinese company.

Shin, which sells products including $ 5 and $ 18 bike shorts, faced political and environmental pressure in the UK due to cotton resource practices and supply chain practices.

She also faced allegations that her clothes contained cotton from the Xinjiang region in China, where the United States and NGOs accused the Chinese government of human rights violations and forced work. Beijing denies any violations.

The company, which transported its headquarters from China to Singapore in 2022, said previously that it had a policy that bears zero for forced work and requires contract manufacturers to issue cotton only from the approved areas.

“If this is the only option now open to them, the Hong Kong market is logical as a place through which you can include a global company with the mainland supply chain,” said Elliot Fesk, the Capital Market Advisor in Hong Kong, and former JPMorgan advisor.

Shin did not respond to Reuters request for comment.

Before trying to include her in London, Shen followed a list in New York. The company, which was established in China, also faced organizational obstacles and retracted American lawmakers in its attempt to include it in the United States.

“It is possible that you will avoid the insertion in Hong Kong protests and the political decline that it may face in the United Kingdom,” said Craig Copen, president of “Bank of America” ​​in Hong Kong.

Although it is not known whether SHIN is planning to search for any exemptions to obtain a possible list in Hong Kong, many exemptions, including concessions related to disclosure, can be searched by the large public subscription columns in the Asian financial center, according to the capital market lawyer.

The Hong Kong menu will also allow it to eventually add it to the city’s stock call scheme, which easily accesses the main mainland for investors and their headquarters, Hong Kong, to buy stocks in the markets concerned each country more easily.