This development, reported by Reuters, citing sources familiar with the matter, follows the approval received by Shein from the China Securities Regulatory Commission (CSRC) on 10 July 2026.
According to the regulator, the retailer, which was founded in China in 2012, plans to issue up to 341.6 million shares on the Hong Kong Stock Exchange.
This represents up to 8% of its shares, but the finalised share allocation will be somewhat less, Reuters reported, citing an undisclosed source.
At an estimated valuation of $40-$50bn, the anticipated capital raised through the IPO would reach the low single-digit billions, a notable decline from the company’s $100bn valuation as of its 2022 fundraising round.
Despite the dip in valuation, the company reportedly plans to compensate investors by providing funds for them to participate in the offering, the source added.
Shein is backed by global investors, including Brookfield, General Atlantic, Mubadala Investment, Saudi Arabia’s PIF, SoftBank, and others.
According to sources with direct knowledge of the matter, the company faced a lengthy wait for official clearance, as the decision required sign-off from top levels of the Communist Party.
Beijing has deemed Shein politically sensitive, exercising caution in supporting the listing amid controversies such as a sex doll scandal in France and ongoing reports of poor labour conditions at its supplier factories in China, the sources added.
Prior to Hong Kong, the retailer explored IPO options in both the UK and the US, but those plans were stymied by scrutiny from Western lawmakers and regulators concerned about transparency and labour conditions.
Commenting on the update, Sharon Iles, apparel analyst at GlobalData pointed out Hong Kong gives Shein access to Asian capital markets and a more direct route to going public.
"If the listing succeeds, Shein will invest in logistics, technology and supply chain operations to compete with rivals such as Temu. The capital also supports its expansion into new markets, including Eastern Europe, the Middle East and South America, regions where growth potential remains significant.
"However, the listing does not resolve ongoing scrutiny over labour practices and product safety. US tariff changes have also created headwinds for its core business model, which relies heavily on low-cost cross-border shipping. "
Shein did not return a request for comment when approached by Just Style.
