Shein Considers Moving HQ Back to China to Streamline IPO Process

Shein is coming home. The online fashion platform is reportedly considering returning its headquarters from Singapore to China, in order to make it easier for the country’s stock exchange regulatory authorities to accept its jump to the Hong Kong Stock Exchange, according to Bloomberg. This is the company’s third attempt, after having received several refusals in New York and London.

The decision, which for the moment has not been confirmed by Shein, would mean the return of the headquarters to the company’s country of origin, where it was founded in 2012, specifically in the city of Nanjing. Since 2022, however, the company moved its headquarters to Singapore, although it keeps much of its supply chain still in China.

According to information revealed by a source close to the company, Shein has recently contacted different lawyers to study the opening of a new parent company in the Asian giant. This could bring the company closer to getting the green light from the China Securities and Exchange Regulatory Commission (CSRC), which is necessary if it wants to list on the Hong Kong Stock Exchange.

Shein hopes to get approval from the country’s stock exchange regulatory authorities

It was the Csrc that justly denied it permission to issue shares on the London Stock Exchange in mid-May. Although Shein is currently headquartered in Singapore, the company’s strong ties to China through its extensive supplier network require it to seek the country’s permission. In the case of the United States, which was the giant’s first choice to become listed, it was the country’s regulatory authorities that denied its application.

Relocating its headquarters in China would automatically turn the Singapore company into a subsidiary, similar to those operated by the company in other countries. According to the same media, this decision means that Shein will both increase its revenues in the country and that the authorities will have greater control over the data obtained through its platform.

At the moment, the details of the possible jump to the Hong Kong stock exchange are not known, the Asian giant expected to jump to the London stock exchange with a valuation of $50,000 million. The figure, which could already be around $30 billion, is a far cry from the $100 billion at which Shein was valued three years ago.