Shein has secured approval from the Financial Conduct Authority (FCA) for its planned London initial public offering (IPO), according to reports.

Reuters reported that the approval marks a "significant step forward" in the China-founded fashion retailer’s pursuit of a listing in London.

After its last fundraising round in 2023, Shein was valued at $66bn.

However, in order to float on London, Reuters reported that it needs to secure approvals from Chinese regulators, including the China Securities Regulatory Commission (CSRC).

Investment director at AJ Bell, Russ Mould said that London has been "crying out for new listing of scale" and that Shein’s potential move "could help raise the profile of the UK market and potentially draw in more big names".

He added: "However, the current market environment could render it moot and makes the targeted timetable of the first half of this year a big ask.

"Getting its IPO away at all could prove as tricky thanks to the levels of global market volatility unleashed by the US administration’s trade policies. This is only exacerbated by the fact Washington continues to pursue a tit-for-tat trade war with Beijing.

"Not only will this make it more difficult to convince investors to back its listing but Shein does business in the US and could well see a significant impact from tariffs beyond just a hit to sentiment. It suggests Shein will have to stress to prospective investors that its growth is not reliant on the US and that expansion across a wide range of countries is key to its future.

"Notably, Shein’s move still requires sign-off from the relevant Chinese authorities too and this may well be affected by the current turmoil."

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