China’s Scrutiny of Shein IPO Plan Shows Regulator’s Reach Widening
- Shein still subject to review despite selling nothing in China
- Process revives memories of Didi probe that forced delisting
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When fast fashion giant Shein firmed up plans for a US initial public offering late last year, the online retailer hoped that it wouldn’t be subjected to regulatory review in China.
The company had several reasons to believe it could avoid the process: Though founded in China, Shein has never sold products in the country, and it moved its global headquarters to Singapore years ago. And while it has reams of personal user data that’s made its cheap trendy wares a rival to Amazon.com Inc. and Inditex SA’s Zara, the trove contains no information on Chinese shoppers — removing, in theory, a security risk that Beijing saw in Didi Global Inc.’s US IPO back in 2021 and prompted its subsequent delisting.