Online fast-fashion giant Shein is considering moving its headquarters back to mainland China from Singapore in a move widely seen as paving the way for a Hong Kong stock market listing. The potential shift underscores not just the company’s ongoing tussles with global regulators but also the growing limits imposed by geopolitical and trade headwinds on Chinese-founded firms.
From Singapore to China Again
Founded in China, Shein officially relocated its headquarters to Singapore in 2022 as part of a strategy to internationalize its brand and distance itself from Beijing’s oversight.
Now, that plan also appears stalled. Chinese regulators have not cleared a UK listing, according to reports, leaving the company with little option but to consider returning home. Despite its Singapore base, Shein is still subject to oversight by the China Securities Regulatory Commission (CSRC) because the company maintains substantial operations in the country. The CSRC requires all companies with significant ties to China to seek review before attempting to list anywhere globally. With the vast majority of Shein’s production still taking place in China, the company remains linked tightly to Beijing’s regulatory orbit.
According to a Bloomberg report, the company has consulted lawyers about setting up a parent company in mainland China, an indication that a Hong Kong listing is now seen as the most likely outcome.
Hong Kong as the Natural Choice
Commenting on Shein’s positioning, Melanie Tng, a private capital analyst for the venture capital research firm PitchBook, said:
“For companies like Shein that are operating at the intersection of consumer, cross-border and digital commerce, Hong Kong is arguably the only viable major offshore listing venue left. Mainland exchanges remain largely inaccessible to these sectors, while US and UK IPOs have grown increasingly difficult due to CSRC approval hurdles and geopolitical friction.”
Her remarks capture Shein’s narrowing options. Mainland Chinese exchanges remain unsuitable for international e-commerce firms, while London and New York face regulatory and political blockages. That leaves Hong Kong still positioned as a global capital hub under Beijing’s control as the only realistic path forward.
Trade Winds Turning Against Fast Fashion
Shein’s market value has come under strain, slipping in private share transactions as competition from fast-growing rival Temu intensified across major regions like the US and Europe. Adding to the pressure, US regulators this year tightened customs rules by shutting down the “de‑minimis” exemption, which had let Shein ship small orders directly from Chinese factories to American shoppers without duties, a change that dampened demand.
At the same time, the company’s long‑pursued IPO has run into repeated roadblocks. In 2023, US lawmakers raised concerns over alleged supply chain ties to Xinjiang, despite Shein’s insistence that it enforces a strict ban on forced labor. Mounting scrutiny ultimately pushed the retailer to abandon its New York listing ambitions and instead weigh alternatives such as London.
Strong UK Growth Despite Challenges
Despite the regulatory scrutiny and looming trade restrictions, Shein continues to post explosive growth in key markets. In the UK, the brand achieved a nearly one-third increase in sales last year, surpassing £2 billion. This surge allowed Shein to overtake British rival Boohoo and close the gap with Asos, according to accounts filed at Companies House last week.
Profits in the region jumped 56% to £38.2 million, of which Shein paid £9.6 million in corporation tax. These figures reflect the resilience of its fast-fashion model globally, even as regulators scrutinize its labor practices and governments close loopholes that enabled its rapid rise.
Facing Global Scrutiny
Shein’s trajectory toward Hong Kong also comes as its supply chain practices remain under a harsh spotlight. Campaigners, influential British MPs, and investors have questioned conditions inside the massive network of suppliers that churn out the company’s garments. These allegations have dogged Shein’s attempts at gaining political support and acceptance as a publicly traded multinational.
The company declined to comment on the latest developments regarding its planned listing and reported headquarters shift.
