Shein must gain the approval of the SEC and Chinese CSRC before it can go public in the US. Shein will likely face scrutiny from both regulators.
Fast-fashion platform Shein has epic plans to expand globally, and part of their plan involves going public in the US, according to a report by Julie Zhu and Anirban Sen of Reuters.
However, before Shein can go public in the US, it must get approval from the Chinese Securities Regulatory Commission (CSRC), which it requested in November 2023.
It’s no secret that Shein has global ambitions. In 2022, Shein moved its headquarters out of China from Nanjing to Singapore, took the US by storm in 2023, and sells in over 150 countries today.
Temu is a similar Chinese platform that has rapidly expanded in recent years. Elsewhere, TikTok’s TikTok Shop is expected to grow tremendously in the years ahead.
However, it is critical to note that China has sought to rein in big tech in the past.
Most prominently, in March 2023, plans were announced to split Jack Ma’s Alibaba Group into six units, each with its own CEO and board—to prevent the conglomerate from becoming too powerful.
But it’s not just the approval of the CSRC that Shein must gain—in the US, there is strong opposition to Shein’s growing influence. Shein also filed for SEC (Securities and Exchange Commission) approval in November but has not received a response.
If Shein gains the approval of the CSRC in China and the SEC in the US to go public, it may signal a significant change in the e-commerce landscape in the years to come.
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