FT's China tech correspondent Eleanor Olcott discusses Shein's stalled IPO plans due to its ties with Beijing. Shein considers shifting focus to London for IPO listing amid US-China tensions. The podcast explores challenges faced by Chinese tech companies amid geopolitical issues and how alternative markets like the UK are being explored for IPOs.
Shein's IPO delay attributed to US-China tensions, forcing it to explore London as an alternative listing venue.
Efforts to distance Shein from China for IPO approval highlight challenges faced by Chinese companies in global markets.
Deep dives
Xian's Struggle for US IPO Approval
Xian, a fast fashion giant, aimed for a US IPO but faced challenges due to tensions between Beijing and Washington. Despite exponential growth and profitability, securing approval for its IPO proved elusive. Regulatory hurdles stalled its listing in the US, emphasizing the widening gap between the two superpowers.
Xian's Strategic Global Positioning
Xian attempted to distance itself from its Chinese roots by not selling in China, moving its headquarters to Singapore, and diversifying its supply chain to Turkey and Brazil. Despite efforts to appear more global, the bulk of its operations and staff remained tied to China, complicating its IPO aspirations.
London as a Potential Listing Alternative
Facing obstacles in the US, Xian explored listing options in London, where it received a more favorable reception. The potential London IPO signifies a shift in investor sentiment towards companies connected to China, presenting a crucial opportunity to reshape the investment narrative around Chinese companies.
In November, online fast-fashion giant Shein filed paperwork to go public in the US. Since then the process has not moved forward at all — and it looks like Shein’s ties to Beijing could be to blame. The FT’s China tech correspondent Eleanor Olcott explains how Shein has tried to distance itself from China to appease US regulators, and where it might go public instead.