China Approves Shein Hong Kong IPO Amid European Legal Battles

The China Securities Regulatory Commission approved the initial public offering of Shein in Hong Kong on July 10, 2026. The approval comes after the fast-fashion retailer spent approximately one year seeking clearance from Beijing, following failed attempts to list in New York and London. The company targets a valuation between $30 billion and $50 billion for a potential listing in September or October, marking a steep decline from its $100 billion peak in 2022.

Shein may offer up to 341.6 million shares, though the final proportion of the float is expected to be lower than 8%. Despite moving its headquarters to Singapore in 2022, the company remains subject to Chinese regulations due to its heavy reliance on Chinese suppliers. The delay in approval was linked to geopolitical tensions and Beijing's concerns over supplier labor practices.

Simultaneously, Shein faces intensifying legal and regulatory pressure in Europe. The European Commission is investigating the sale of illegal products, and the Irish Data Protection Commission is probing the transfer of European user data to China. In France, a court issued a provisional ban on products using the Lacoste logo, awarding the brand €110,000 in damages. French regulators have also fined the company over misleading discounts and consumer data issues.