Fast-fashion giant Shein is reportedly aiming to list in London in the first half of the year if it receives regulatory approvals, though concerns have been raised about its working practices.
Reuters reported last week that Shein’s initial public offering on the London market could be completed as early as Easter, if it were to get the green light.
However, a senior member of parliament wrote to the London Stock Exchange (LSE) last week to raise his concerns about Shein’s potential £50bn flotation on the UK stock market.
Liam Byrne, chair of the cross-party business and trade committee, wrote to the LSE’s CEO Julia Hoggett following a committee evidence session in which it heard from Shein’s Europe, Middle East and Africa general counsel, Yinan Zhu.
He wrote that the committee was “profoundly concerned at the lack of candid and open answers to some extremely simple, basic questions about the integrity of Shein’s supply chain”.
Byrne asked Hoggett to inform him of what checks exist to authenticate statements made by firms seeking to list on the LSE.
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In another letter, to Nikhil Rathi, CEO of the Financial Conduct Authority, Byrne asked the head of the City watchdog to set out what checks it conducts to “ensure all legal risks are disclosed”.
Reports of the China-founded company’s planned listing in the UK have been dogged by concerns about its labour practices.
For example, the BBC reported on Sunday that it found in one neighbourhood — known as the Shein village — in Guangzhou, China, some factory workers were clocking up around 75 hours a week.
A spokesperson for Shein had not responded to Yahoo Finance UK’s request for comment at the time of writing.
Shein’s potential listing comes as the UK market has continued to struggle to attract IPOs, with companies opting for the likes of the US instead.
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