Shein's London IPO Faces Forced Labour Allegations

Shein's IPO plans in London are challenged by Stop Uyghur Genocide, alleging forced labour in its supply chain. The Financial Conduct Authority (FCA) faces pressure regarding the IPO approval. Shein adheres to global supply standards but lacks clarity on cotton sourcing for UK products.

Shein's ambition to list in London has been met with opposition from Stop Uyghur Genocide, a campaign group alleging the retailer's use of forced labour in China. The group threatens judicial review if Britain's regulator approves the IPO, citing forced labour in the retailer's supply chain.

The Financial Conduct Authority (FCA) is under pressure, though it cannot comment on pending listings. Shein firmly denies the allegations and states it prohibits forced labour globally, aiming for London listing approval this year, according to inside sources.

This isn't the first judicial challenge to an IPO; similar claims were rejected in 2023 against Ithaca Energy's flotation. Uyghur forced labour allegations persist against Chinese cotton, a significant part of Shein's supply, especially for the U.S. market under strict compliance rules.

(With inputs from agencies.)