Shein Wins CSRC Approval for Hong Kong IPO, Targeting $50 Billion Valuation

Quick Facts

China’s securities regulator approved Shein to issue up to 341.6 million shares on the Hong Kong Stock Exchange.
Shein could launch its IPO as early as September 2026 and must complete the listing process within 12 months.
The company generated $38 billion in revenue in 2024, but profit fell roughly 40% to around $1 billion.

Ultra fast-fashion retailer Shein received approval Friday from China’s securities regulator to pursue an initial public offering in Hong Kong, ending years of failed attempts in New York and London.

The China Securities Regulatory Commission posted the approval on its website, confirming Shein Global Holdings plans to sell up to 341.6 million H shares on the Hong Kong Stock Exchange. The company must complete the full issuance and listing process within 12 months.

Shein filed confidentially for its Hong Kong IPO, and listing documents had not been made public as of Friday. With regulatory approval secured, the company can now organize investor roadshows and prepare for the Hong Kong Stock Exchange hearing required of all IPO candidates. A launch could come as early as September.

The company is considering raising several billion dollars in the offering. Final figures will depend on valuation. Sources say Shein is targeting a valuation of $40 billion to $50 billion, a steep drop from its 2022 peak of $100 billion and its $66 billion founding round in May 2023. At $50 billion, Shein would still be roughly double the market capitalization of H&M, which sits near $24 billion, but well below rival Temu parent PDD Holdings at $117 billion.

Shein posted $38 billion in revenue for 2024, a 19% increase year over year. Profit fell roughly 40% to around $1 billion as competition from Temu intensified and tariff-driven price increases weighed on consumer demand in key markets including the U.S. and Europe.

The path to a public listing has been long. Shein first filed confidentially for a U.S. IPO in November 2023 but faced sustained resistance from lawmakers and regulators. It then pursued a London listing, where the Financial Conduct Authority presented its own hurdles. Susannah Streeter, head of money and markets at Hargreaves Lansdown, told CNBC that even with Chinese regulatory approval, an FCA review would still need to run its own full process.

Beijing’s decision to greenlight the Hong Kong listing carries a broader signal. “China removes a long-time and major political uncertainty for Shein,” Han Lin, China director at The Asia Group, told AFP. “Beijing is signaling selective reopening, not deregulation, rewarding companies that strengthen China’s economy while remaining aligned with national security and regulatory priorities.”

Kelvin Lam, a China-focused economist at Pantheon Macroeconomics, told AFP the approval shows Beijing still supports Hong Kong as a major offshore capital-raising platform.

A Shein listing would be a significant event for Hong Kong’s equity markets. The city has already seen nearly $35 billion raised in first-time share sales this year. The CSRC has cleared more than 180 IPOs in the past 12 months, and Shein would rank as the highest-profile retailer to list in years.

Founder Sky Xu, who started the company in China in 2012 as Sheinside, has pledged to invest more than 10 billion renminbi ($1.4 billion) in an intelligent supply chain system in Guangdong province over the next three years. The province is home to the sprawling manufacturer network that produces Shein’s low-cost clothing. Shein’s platform exports from Guangdong exceeded 100 billion yuan ($14.5 billion) in 2025.

Shein’s backers include General Atlantic, HongShan Capital, Mubadala Investment, Brookfield, and Claure Group. The company has said it aims to increase transparency, though Xu does not appear on its corporate website, which lists no information about company ownership or leadership in its governance section.