Bloomberg: Shein considers returning headquarters to China for Hong Kong IPO

Online fast-fashion retailer Shein Group is considering moving its headquarters from Singapore back to China to gain approval from Beijing authorities for its planned IPO in Hong Kong. About writes Bloomberg, citing informed sources.

According to the agency's interlocutors, Shein has already consulted with lawyers about setting up a parent company in China. No final decision has been made yet.

The company previously tried to go public in New York and London, but faced regulatory rejection. Now the main bet is on Hong Kong, where Shein has filed a confidential listing application.

The agency's sources believe that moving the company's headquarters to China could improve the company's chances, as it would mean paying taxes in the country and strengthening government control over user data. The latter is one of the conditions for the approval of the IPO by Chinese regulators.

Shein was founded in Nanjing, China, but moved its headquarters to Singapore in 2021 in an effort to position itself as a global company.

The retailer is now facing stiff competition from Temu, and its valuation has fallen from a record $100 billion three years ago to around $30 billion.

If Shein is successful in its Hong Kong listing, it could be one of the most notable deals of the year for the local IPO market.

• On April 28, it was reported that Shein increases prices in the US by up to 377% due to new tariffs on small parcels from China.