Report: China's online fashion retailer Shein files for US IPO

Chinese online fashion retailer Shein has registered with regulators for an initial public offering in New York, according to news report by sources.

Shein, fashion retailer worth more than $60 billion, is under scrutiny from US lawmakers over its labor practices, the report added.

The stock market debut could make Shein the most valuable Chinese company to go public in the United States since ride-hailing giant Didi Global listed in New York in 2021 at a $68 billion valuation. Didi was delisted from New York a year later amid Beijing's crackdown on Chinese technology giants over antitrust and data security rules.

Shein has confidentially submitted its IPO registration with the US Securities and Exchange Commission (SEC), the report added.

The stock market debut could come before the end of 2023.

According to earlier reports, fast-fashion giant was also looking to strengthen its presence in Europe and Mexico, including selling more locally made products, in a bid to diversify its China-centric supply chain.

The company will launch an online marketplace in Mexico, where products from third-party sellers can be bought alongside Shein’s own brand of $10 dresses and $12 jeans. That’ll be followed by roll outs in Germany, Spain, France and Italy.

Despite its diversification push, the company remains heavily reliant on a vast network of contract manufacturers in China that churn out new designs in about 10 days to meet the fast-changing whims of Western consumers.

While the system has underpinned Shein’s rapid ascent  it far surpasses Zara and H&M in the US fast-fashion market it’s also left the company mired in the middle of US-China tensions that are rippling across a raft of sectors.

The firm has also long faced criticisms that run the entire gamut of its operations from accusations about stealing designs, to links to forced labor and its contribution to overconsumption that’s harming the environment.