Shein’s £50bn car in London seized by anti-commissioner and Uyghur campaign group

A £50bn listing of Shein’s stock markets was seized after the Government’s antitrust commissioner and a Uyghur campaign group challenged the scheme.

The fashionista is gearing up for a London flight next year to boost the city’s popularity as companies head out of the market.

But the move has sparked controversy over allegations of bribery against its suppliers, with fund managers warning that London should not be a ‘last resort’ listing.

And in the latest blow to the online retailer’s plans, the financial regulator has not yet approved an initial public offering.

Based in Singapore, Shein was founded in China and relies on local suppliers to make its T-shirts and cut-price clothing.

Human rights organizations have long accused China of atrocities in the Xinjiang region, where they say the Uyghurs – a predominantly Muslim ethnic group – are forced to work to produce cotton and other goods. Beijing has dismissed the scandal.

More than a fifth of the world’s cotton comes from the region but it is widely believed to be produced through slave labor, prompting Western brands including H&M and Nike to announce they will remove it goods from their supply chain.

According to Reuters, Britain’s Health Care Commissioner has raised concerns in the Government.

And the advocacy group Stop Uyghur Genocide launched a legal challenge in June. He submitted to the Financial Conduct Authority (FCA) a report in August saying that Shein was using cotton from China’s Xinjiang region.

MPs on the business committee are preparing next month to investigate Shein’s bosses over the worker’s concerns.

The retailer is also awaiting approval from China’s securities regulator for its London IPO. Approval may come after a decision by the FCA.

Susannah Streeter, at Hargreaves Lansdown, said: ‘ESG (environmental, social and governance) issues are important because damage, legal fines and consumer interest can affect a company’s profitability. and share price.

‘However, there is an argument that investment opportunities are changing.

‘A listing can make the industry more transparent and accountable to shareholders, which will involve the industry in improving standards.’

Shein refused to answer. It is said to have a zero-sum policy on forced labor and a commitment to respect for human rights.

Last week the firm said it had appointed an external ESG advisory board to strengthen its pre-listing mandate.

And in a sustainability report published in August, Shein said it found two cases of child labor in its supply chain in 2023 but no evidence of forced labour.

Big investment firms have been cautious. The UK Sustainable Investment and Finance Association, whose members include Aviva Investors, Schroders and M&G, said London should ‘not be a listing for companies with poor human rights records.

The British Fashion Council has warned that the planned flight is ‘extremely expensive’.

But Julia Hoggett, the head of the London Stock Exchange, has previously dismissed the allegations – saying the accusations have no merit. Hoggett declined to comment directly on the company or criticism of that company.

However, he said: ‘If companies want to come to our market, meet our standards and adhere to the level of regulatory standards that we have, I think the UK will be a home for them to raise capital.’

Shein’s attempt to float in New York faced legal hurdles and opposition from lawmakers, who wanted to verify that no force was used.