(BFM Stock Exchange) – After being refused to enter the rating in London, the Chinese group would think, according to Bloomberg, to bring back its headquarters from Singapore to China so that Beijing validates its introduction to Hong Kong.

Relocating living forces in his country of origin to attract the good graces of the government. Many American companies (such as Apple or General Motors) have recently made decisions of this type to satisfy the Trump administration.

Shein, for his part, is thinking of returning to continental China to show white paw with the Chinese authorities.

According to Bloomberg, the specialist in “fast -fashion” – ultra -fast production of new collections – would consider relocating his headquarters, located since 2021 in Singapore, in China, in order to obtain a green light from his introduction project on the Hong Kong Stock Exchange.

The profits of the company could then be taxed locally, which would be seen with a good eye by the Chinese authorities. And Beijing could also monitor the gigantic Shein database with increased control.

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A Arlesian

The press agency reports that the company has consulted lawyers to carry out this relocation, citing sources close to the file. The underlying scheme could go through the creation of a parent company that would be based in continental China. Questioned by Bloomberg, the company did not wish to comment on this information.

The Shein’s IPO, on which few official announcements and comments from the company have circulated, is increasingly like an Arlesian. The first noises of corridors on this potential operation date from over two years ago. Since then, this project has still not materialized.

According to several media, Shein had previously planned to break into the New York Stock Exchange before changing the first time from Cap to London. According to CNBC, the Chinese group had then had to face the doubts and the circumspection of the American regulatory authorities.

Shein then obtained last March the authorizations of the Financial Conduct Authority (FCA), the British gendarme of the Stock Exchange, to be able to enter the London coast. But the green light from the Chinese Commission for Securities Regulation (CSRC) has never come. This still prompted the company to review its plans in May to enter, this time, in Hong Kong, according to Reuters.

Even if Shein intended to enter abroad, the group had to go under the caudine forks of the Chinese authorities, because the CSR imposes a validation process before any rating on companies with an important link with China, even those not based in the country.

A depressed valuation

Shein seems to play his all-while somewhat to end up getting into the stock market, while his valuation has, a priori, melted. A fundraising made in 2022 estimated the company around $ 100 billion, according to several American media. According to press information, its shareholders had pressure last February so that the company drops its valuation targets to $ 30 billion, so as to facilitate its introduction then in London.

With its model offering clothes at broken prices, Shein has nevertheless experienced hyper-growth in recent years. In a note published in February, Royal Bank of Canada estimated that the Chinese group had more than tripled its world sales since 2021, with a very large proportion in the United States (around 30%).

“Their competitive advantages (Shein and the TEMU e-commerce group, editor’s note) include low prices and powerful algorithms, and they have been very effective in attracting new customers on social networks and using a high proportion of paid research marketing. Shein is among the most followed fashion brands on social networks”, developed the Canadian Bank.

However, like other Chinese e-commerce companies, Shein was greatly struck in May by the imposition of American customs surchasters on parcels worth less than 800 dollars.

The company’s business practices have also been the subject of several investigations. In France, the Directorate General for Competition, Consumption and the Repression of Frauds inflicted a fine of 40 million euros in the group last July. Surveys have also been opened in Belgium, Ireland and the Netherlands.

The European Commission has initiated an action against the Chinese group at the end of May asking the company to put an end to several “deceptive or abusive practices” towards European consumers.