Shein Seeks Approval for U.S. IPO Despite China Ties
Shein, the Singapore-based fashion giant valued at $66 billion, is navigating the complex terrain of seeking approval from Chinese regulators for its planned U.S. initial public offering (IPO). Despite efforts to distance itself from China, Shein filed with the China Securities Regulatory Commission (CSRC) in November, adhering to new listing rules for Chinese firms.
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While Shein confidentially filed for a U.S. IPO in November 2022 and could launch the share sale in 2024, the decision to comply with Chinese regulations introduces complexities. The new rules stipulate that local firms seeking offshore listings must gain clearance from the CSRC, involving a comprehensive approval process with various Chinese regulatory bodies.
Shein, known for its affordable fashion across 150 countries, faces potential hurdles not only with U.S. regulators, especially in an election year, but also with the intricate Chinese approval process. Despite the company’s attempts to present itself as a global entity, the CSRC filing underscores the challenges in navigating the evolving regulatory landscape.
The move towards compliance with Chinese regulations aligns with the rules introduced in March 2022, requiring local firms with offshore listing plans to go through CSRC clearance. Shein’s significant ties to China, including manufacturing and supply chain reliance, position it within the scope of these regulations.
As Shein treads the path toward a landmark U.S. IPO, the dual challenge of meeting the expectations of both U.S. and Chinese regulators underscores the complexities faced by companies with substantial ties to both economic powerhouses.
Source: Zawya.com
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