Key Takeaways
Shein wins Chinese approval for Hong Kong IPO
- Shein's Hong Kong Stock Exchange hearing is scheduled for Thursday, bringing the company closer to its market debut
- Chinese regulators approved the IPO on Friday, removing a major hurdle after a year-long wait
- The company targets a $40-50 billion valuation with a potential September or October listing
Shein will face Hong Kong's stock exchange listing committee on Thursday, two sources told Reuters. The hearing follows Friday's approval from Chinese securities regulators and marks the final major checkpoint before the fast-fashion retailer can begin its investor roadshow.
The company is targeting a valuation between $40 billion and $50 billion, with a potential listing in September or October. That's a steep drop from its $100 billion peak valuation in 2022, but would still make it one of Hong Kong's largest IPOs in years.
Why did Shein choose Hong Kong over the US?
Shein originally filed for a US IPO in late 2023. That plan collapsed under regulatory scrutiny. US lawmakers questioned the company's supply chain practices, labor standards, and ties to China. The pivot to Hong Kong wasn't Plan A.
Founded by Chinese-born entrepreneur Sky Xu in 2012, Shein spent a full year waiting for Beijing's approval after confidentially filing its Hong Kong application last July. The China Securities Regulatory Commission's green light on Friday removed the biggest obstacle in that process.
What happens after Thursday's hearing?
During the hearing, Shein executives will answer questions from the listing committee. If the exchange grants clearance, the company can proceed to investor roadshows and bookbuilding. That sequence typically takes several weeks, which aligns with the September or October target.
Neither Shein nor the Hong Kong Stock Exchange has commented publicly on the timeline. The sources familiar with the matter could not be named because the information remains confidential.
The valuation gap tells a story
Shein's target valuation of $40 to $50 billion sits well below its 2022 high of $100 billion. The 2023 funding round already reflected this correction, valuing the company at $66 billion. Public markets are pricing in the regulatory headaches and reputational risks that private investors could overlook.
The company operates in over 150 countries and reportedly generates more than $30 billion in annual revenue. At its peak, Shein added roughly 6,000 new styles to its platform daily. That velocity made it one of the most disruptive forces in retail. It also drew criticism from environmental groups and labor advocates.
What the IPO means for Hong Kong
Hong Kong has struggled to attract major tech IPOs since 2021, when regulatory crackdowns in mainland China spooked investors. A successful Shein listing would signal renewed confidence in the exchange as a destination for Chinese-founded companies that want global investor access without US regulatory exposure.
The city's exchange has been actively courting tech listings. Shein's arrival, if it clears Thursday's hearing, would be a visible win.
Logicity's Take
Shein's Hong Kong pivot is a template other Chinese-founded tech companies may follow. The US listing path now carries enough political risk that Hong Kong becomes the default, even for companies with global customer bases. For investors, the real question is whether a $45 billion valuation adequately prices in the ongoing supply chain scrutiny and the fast-fashion backlash that's intensifying in Europe. The IPO will test appetite for growth-at-any-cost retail models in a market that's grown more skeptical of them.
Frequently Asked Questions
When will Shein go public in Hong Kong?
Shein is targeting a September or October 2025 listing, pending clearance from Thursday's stock exchange hearing.
What is Shein's expected IPO valuation?
The company is targeting a valuation between $40 billion and $50 billion, down from its peak of $100 billion in 2022.
Why did Shein abandon its US IPO plans?
US regulators and lawmakers raised concerns about Shein's supply chain practices, labor standards, and ties to China, making a US listing untenable.
Who founded Shein?
Shein was founded by Chinese-born entrepreneur Sky Xu in 2012.
How much revenue does Shein generate annually?
Shein reportedly generates more than $30 billion in annual revenue and operates in over 150 countries.
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Source: Tech-Economic Times / ET
Huma Shazia
Senior AI & Tech Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
