Shein is considering moving its legal domicile back to China to help secure regulatory approval for its planned Hong Kong IPO, according to sources.

The fast-fashion retailer, currently based in Singapore, has consulted lawyers about setting up a parent company in mainland China, but no final decision has been made.

The move could make it easier for Chinese authorities to approve Shein’s listing, as the China Securities Regulatory Commission requires companies with significant ties to China to undergo review before going public overseas.

A shift to China could also subject Shein’s income to local taxes and place its data under stricter government oversight.

Shein was founded in Nanjing and moved its headquarters to Singapore in 2021.

The company confidentially filed for a Hong Kong IPO after its previous attempts to list in New York and London stalled due to regulatory challenges.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Regulatory jurisdiction shopping is becoming increasingly difficult for Chinese companies

Shein’s journey illustrates how Chinese companies face shrinking options for overseas listings as global regulators tighten oversight.

The company has now faced challenges in three major financial centers, first abandoning plans for a New York IPO after US lawmakers scrutinized its alleged use of forced labor, then facing delays in London due to China Securities Regulatory Commission approval issues1.

Even Hong Kong, traditionally seen as a bridge between China and international markets, requires Beijing’s approval for companies with substantial Chinese operations like Shein.

This trend reflects broader geopolitical tensions affecting Chinese companies’ access to international capital markets, forcing them to navigate increasingly complex regulatory requirements across multiple jurisdictions.

The fact that Shein is now considering moving its headquarters back to mainland China—reversing its 2021 move to Singapore—demonstrates how regulatory compliance is influencing strategic business decisions that may conflict with companies’ global ambitions.

2️⃣ Market dominance doesn’t guarantee IPO success in today’s regulatory environment

Despite Shein holding a commanding 50% market share in the US fast fashion sector—double its share from March 2020—the company has watched its private market valuation tumble from $66 billion to around $30 billion23.

Recent Shein developments