Bus advertising Chinese fashion company Shin on May 4, 2025 in London, UK.
Mike Kemp In photos Gety pictures
The problems of the fast fashion giant in Shein continues to install after it was mentioned, and according to what was reported, its first public offer in London (IPO) achieved a new barrier.
Reuters reported on Wednesday that the e -commerce giant now aims to obtain the Hong Kong list after his failure to obtain approval from Chinese organizers on the general subscription in London.
The London list was seen as a blessing of the 16 -year -old Chinese company, providing international legitimacy and reaching a deep and mature group of Western investors. However, analysts said they were not amazed at this step given the continuous scrutiny of the company.
“We have always said that we thought Hong Kong would be a safer option for the public subscription to Shane,” Samuel Kiir, head of the global capital market at Mergermarkket, told CNBC’s “Squawk” on Thursday.
“For international investors, this was always the public subscription that had a lot of poetry, and may play better for a local audience,” he added.
The Chinese Securities Regulatory Committee or Chinese Organization (CSRC) did not respond to the CNBC request to comment on the plans. Hong Kong Porses and limited disinfection said it does not comment on individual companies.
Shen has faced an arduous battle in her existing ambitions, as she seeks to get rid of allegations about the use of forced work to produce her shirts of $ 5 and $ 7 shoes. While he strongly denies these claims, Shane turned her focus from a list in New York to London after facing the continued retreat of such issues from American legislators.
Meanwhile, anxiety about its commercial practices has sparked an investigation into the European Union, which was earlier this week Find The company that violates consumer protection laws, including the use of fake discounts, pressure selling, and shoppers, on sustainability claims.
The closure of this month of the minimum minimum of the United States for low -cost commodities – and similar measures by the European Union and the United Kingdom – added only to the company’s problems.
“A hail of criticism, which seemed appropriate to intensify before the London list, is partially the reason that the Chinese organizers were hesitant to give the green public subscription,” said Susanna Striter, the head of money and markets in Hargrif Lancedawn, on Wednesday.
London loss?
The Shin list in London also considered that it provides a batch that is intensified by the pale public subscription market in the United Kingdom after a series of deletions and splits amid intense competition from other financial markets.
“This will be a blow to London’s aspirations to attract larger names to include them in the capital, but given the obstacles that accumulate, it is not surprising (that) that the company is deviating in another direction,” said Striter.
However, some have expressed concern that setting the controversial list as the public subscription revival in London could send the wrong signal to investors.
“There was little anxiety from some in London that Shen would be seen as a standard scale for the future of the London Stock Exchange and for the return on London. I think this would be a problem,” said Kiir.
Customers visit the “Spring Boutique” store in Palazzo Dei Giureconsulti on March 23, 2024 in Milan, Italy.
Emmanuel Karimasti Getty Images Entertainment | Gety pictures
The additional audit in the United Kingdom was also seen as pressuring the evaluation Asosand the next and Bohoo. According to what was reported, the company was under pressure to reduce the London list evaluation to about 30 billion dollars, According to To Bloomberg, a decrease from $ 50 billion previously.
Kiir pointed out that “the distance from the United Kingdom and away from their peers in the UK will likely to obtain a higher assessment.”
Meanwhile, the SHEIN menu can drive another blessing for Hong Kong in what is formed to be a strong year for the market after fresh capital flows from investors abroad.
“It could have been a useful teacher for Shein to include in London or New York, given the entitlement, depth and evaluation capabilities of these markets,” Roy Ma, the founder and analyst at Tech Buzz China, told CNBC.
“However, the markets are eventually formed through the quality of their lists and the participants. The Shin list is a victory for Hong Kong – but not after a turning point.”
CNBC investors spoke to the refusal to comment on transferring the reported list.
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