Analysts Suggest Shein's Shift to China is a Final Effort to Save Its IPO

Shein's Headquarters Relocation: Shein is considering moving its headquarters back to China from Singapore to facilitate its initial public offering (IPO) in Hong Kong, following challenges with regulatory approvals.

IPO Challenges and Valuation Decline: The company has faced significant hurdles in its IPO ambitions, shifting focus from New York to London, and now to Hong Kong, while its valuation has plummeted from $100 billion to around $30 billion.

Regulatory Alignment Strategy: Analysts suggest that re-domiciling to China could signal regulatory alignment, making it easier for Shein to gain approval from the China Securities Regulatory Commission for its listing.

Impact on Hong Kong Market: A successful Shein IPO would benefit Hong Kong's stock market, which has seen a surge in new listings, contrasting with London's struggling IPO environment.