Shein is considering relocating its base from Singapore back to China as it seeks Beijing’s approval for a planned Hong Kong initial public offering (IPO), according to a Bloomberg report on Tuesday.
The report noted that Shein has consulted lawyers about creating a parent company in mainland China, citing people familiar with the matter. However, it also emphasized that the discussions are preliminary and may not lead to concrete action.
IPO Ambitions in Hong Kong
Shein, which sources much of its inventory from China, filed confidentially for a Hong Kong IPO last month, according to the Financial Times. The move follows delays with a potential London listing, which has been stalled for over a year due to regulatory hurdles.
A successful listing in London had been expected to boost Shein’s global profile, giving it access to Western capital markets and investor pools. But with momentum stalling there, Hong Kong has become the company’s next target.
Shifting Global Position
Founded in Nanjing, China, in 2008, Shein has expanded rapidly to become one of the world’s leading fast-fashion platforms. The company moved its headquarters registration to Singapore in 2019 and officially based itself there in 2021, as part of a broader push to strengthen its global presence.
Now, with mounting policy challenges in Western markets, including the U.S., the company appears to be recalibrating. President Donald Trump recently removed a tariff exemption that had helped Shein keep costs low on small shipments, while lawmakers in Europe are considering similar restrictions.
Even before the London delays, Shein faced setbacks in the U.S., where its IPO ambitions collapsed amid political pushback and allegations of forced labor in its supply chain.
The company declined to comment when contacted by CNBC.
Author’s Opinion
Shein’s constant shifts between markets and headquarters suggest a company struggling to find lasting stability. Rather than building long-term trust in Western markets, it appears to be moving back to safer ground in China to secure regulatory approval. This may work in the short run, but it raises questions about whether Shein can ever escape the cycle of retreating when global scrutiny intensifies.
Featured image credit: Dick Thomas Johnson via Flickr
For more stories like it, click the +Follow button at the top of this page to follow us.