Fast-fashion retailer Shein is considering moving its headquarters from Singapore back to mainland China to simplify approvals with Beijing regulators and gain approval for an IPO in Hong Kong, Bloomberg reported, citing sources.

The company has already consulted with lawyers on the issue of establishing a parent structure in China, the agency's interlocutors said. Such a step will make Shein a tax resident of China and allow regulators to control corporate data - these are mandatory conditions for entering the stock exchange in Hong Kong, writes Retail Sector. Currently, all companies with significant ties to China are required to obtain approval from the China Securities Regulatory Commission (CSRC) even to place shares outside the country.

Shein previously tried to enter the New York and London markets, but was unsuccessful, CNBC recalls . In the U.S., the company faced political pressure and accusations of forced labor, which it itself denies, says The Wall Street Journal. In the UK, the process has stalled precisely because of the lack of consent of the Chinese authorities, adds the Financial Times. Now Hong Kong remains the main option for the realization of multi-year IPO plans, as it is closer to China and politically less problematic.

Shein was founded in Nanjing in 2008 and has been banking on global expansion from the beginning. In 2019, the company registered its headquarters in Singapore and finally moved its base there in 2021 to reduce regulatory risks and strengthen its international image.

This article was AI-translated and verified by a human editor

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