Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Shein has secured preliminary approval from the UK’s financial watchdog to float in London, taking the ecommerce company a step closer to a stock market listing.
The Financial Conduct Authority has approved Shein’s initial public offering prospectus in recent weeks, according to a person familiar with the process.
The nod by the FCA is a precursor to final approval by the watchdog if Shein were to go ahead with the float, the person added. The FCA’s approval was first reported by Reuters.
However, Shein appears to be a major victim of Donald Trump’s punitive tariffs on China, where the majority of its manufacturers are based, casting doubt over its valuation and future prospects.
The US president has scrapped the so-called de minimis rule, which allowed parcels worth less than $800 to enter the US duty free, and replaced it with a 90 per cent tariff.
Shein, founded in China and headquartered in Singapore, first launched plans to go public in New York in late 2023 but pivoted to the UK after being spurned by the US Securities and Exchange Commission.
The company would still need the approval of Chinese regulators to go ahead with an IPO in London.
Shein did not immediately respond to requests for comment. The FCA declined to comment.
This is a developing story . . .
