Politics and fashion: when the two of them coincide, there is often beautiful art and statements created. But when the politics are not about the art but instead about money and shareholders, the beauty of fashion is diluted and the messiness of politics and profits is revealed.
Shein is not known for many good things except their success, and recently they have been considering becoming a publicly traded company on the New York Stock Exchange (NYSE). However, they have faced many significant hurdles in regulation, backing, and public image to meet the high standards of the NYSE. While Shein privately filed for IPO months ago, the SEC is stalling and finding ways to block them from entering the American public trading forum. While the allegations of Shein using forced labor are very severe, the SEC cannot block just based on allegations. However, they can force them to disclose previously private information about their supply chain. They have been linked to using labor and production in China’s Xinjiang region which has been connected to forced labor concerns and human rights violations with the Muslim Uyghur minority.
Because of this, they have started to seriously consider listing on the London Stock Exchange (LSE). The LSE has seen some down years lately, with many of their biggest companies switching to the NYSE, based on many factors such as higher market caps and profits, many regulations and credits available to companies that could mean potential bonuses, and a politically friendly environment to new European companies. However, for Shein, tense Sino-US relations mean that pivoting to an LSE listing would be the more viable option. The UK is also in favor of this happening as well, with Chancellor Jeremy Hunt meeting with Shein’s chair Donald Tang to discuss listing possibilities. The LSE has consistently lost companies listed on the exchange, having lost over 500 companies since 2015. The struggling market is getting desperate, and because of the high valuation of 66 billion USD, they would be a massive boon to the LSE.
However, it is not without its risks. Becoming a listed company on the LSE is sometimes even more of an arduous process than the NYSE, with immense layers of red tape and bureaucracy to get through, especially with a company facing as much scrutiny from the public as Shein. However, with all of the regulations and rules, there comes clarity. They have been making strides in streamlining the process, so with proper guidance and formatting listing is often easier than on the NYSE. Shein having UK backing and advising means that if they choose to move forward with an IPO they may be able to bypass much of the difficulty that they would face if they were a smaller, less desirable company.
What does this mean for Shein? They have many options, and while an IPO is not needed for the company, going through the process would be financially beneficial in many ways. The political landscape and public view are not the most friendly to them, but are the potential profits and financial positives enough for the UK to continue courting them? A public launch, if imminent, would be months away. For now, all we can do is wait and see, and hope that accountability for Shein’s human rights violations can somehow overrule the love of money.
Words by Dexter Slinn
Graphics by Emily Strycharz