The Labour Party has expressed its support for Shein, the Chinese online fashion firm that is preparing to launch the UK’s largest ever stock market listing.
According to reports, the £52bn retailer will be filing confidentially a prospectus to list on the London Stock Exchange with the Financial Conduct Authority by the end of this week.
Labour confirmed that it had received a report that their MPs met with the retailer. “A range of companies, including Shein, are interested in investing or listing in Britain,” said Labour.
Labour spokesperson: “Improving investment, productivity and Growth is one of Labour’s missions for Government.”
The listing may prove to be divisive. Shein made the decision to list in London after an initial attempt to float on New York was derailed by concerns over tensions between Beijing & Washington.
Senior politicians, including the chairs of three parliamentary committees, have raised concerns about the labour conditions within Shein’s supply chains.
Labour stated that it expects “the highest standards of regulatory compliance and business practices” for businesses in the UK. The spokesperson stated that the best way to achieve this was to have more businesses operating in the UK and being regulated under UK law.
The Times reported that Jonathan Reynolds, shadow business secretary, Sarah Jones shadow minister of industry and Chris Bryant shadow minister of creative industries met Donald Tang, Shein executive chair, to discuss listing.
Jeremy Hunt met Tang in early this year, to convince Shein to list her company in the UK instead of New York.
Due to its low prices, the company has quickly become one of the largest fashion retailers in the world.
The company is based in Singapore, and although most of its suppliers reside in China, the company does not export to that country.
In 2023, the company reported a profit of more than $1.1 billion, almost double that of 2021. It is believed that if listed in the UK, it could be worth £50bn.
Sky News, which broke the news of the impending filing, said that it was a momentous occasion and that a City listing for Shein is very likely.
Shein responded to critics by saying that it takes its commitment to human rights and zero tolerance for forced labour seriously.
Shein listing in the UK would be a major boost for the LSE. A number of prominent companies have left the UK to list elsewhere.
The UK Chip Designer Arm chose to list on Wall Street in August last year after the government was unable to convince it to float there.
The Anglo-German Travel Company Tui decided to list its shares in Germany exclusively earlier this year. Last month, the UK-based technology firm Raspberry Pi announced its intention to list on the UK.
The listing will surpass the largest listing on the LSE, the commodities firm Glencore’s £38bn listing in 2011 and the spin-out GSK’s consumer products arm as Haleon at £30.5bn by 2022.
Separately, Shein announced on Monday that its resale platforms, which allow customers to resell used products from the fast fashion retailer, will be available in Europe as well as the UK.
Reuters reported that the platform will first be available in France and then in the UK, Germany, and other countries in phases.
The European launch could help to address one of Shein’s main criticisms – that the clothes were bought cheaply, then thrown out in favor of newer items.
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