Shein has filed for an initial public offering (IPO) in Hong Kong in an attempt to force UK regulators to approve its debut on the London Stock Exchange.

The Financial Times reported that the Chinese fast-fashion firm privately filed a draft prospectus to Hong Kong’s exchange last week, with a regulatory nod from the China Securities Regulatory Commission.

If the Financial Conduct Authority (FCA) eases its risk disclosure for the listing, the IPO could be the largest that London has seen in a number of years, the newspaper added.

Furthermore, if the regulator is willing to accept a China Securities Regulatory Commission-approved prospectus, London is still set to be Shein’s primary exchange target.

Investment analyst at AJ Bell, Dan Coatsworth, stated that the potential IPO comes after Shein failed to get a US listing.

He said: “Reports suggests it has filed paperwork to list in Hong Kong as a way of putting pressure on the UK regulator to give the green light for a London listing. Chinese regulatory requirements are different to the UK, so Shein might simply be trying its luck in thinking the FCA would accept a Chinese-approved prospectus and bend the rules because it’s presenting a ready-made IPO on a silver platter."

Coatsworth added that the move could also be a positive step for London, after losing a number of companies to alternative listings.

He concluded: "The UK is desperate for big-name companies to join the London market, but there are standards to uphold and the flood gates won’t simply be opened to anyone who fancies listing.

"Shein’s London IPO has been delayed by ongoing concerns from the regulator and potential investors around transparency, ethics and governance. Until there are answers to the smorgasbord of questions, it’s hard to see Shein heading for London’s market anytime soon."

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