Controversial Shein Eyes London Stock Market Listing
The Chancellor's recent visit to China is suspected to be a strategic move to facilitate a £50 billion London listing for the fast fashion giant Shein, according to sources in the City. With over £1.5 billion in sales from selling inexpensive clothes to young consumers in the UK, Shein is now preparing for a stock market debut in London.
Rachel Reeves' Role in the Alleged Plan
Amidst this backdrop, Rachel Reeves has expressed her ambition to attract international companies to the UK. Her recent trip to China, accompanied by London Stock Exchange chief David Schwimmer and financial regulator Nikhil Rathi, is believed to be a calculated effort to pave the way for Shein's listing in London.
Controversy Surrounding Shein
Shein has faced scrutiny over its sourcing practices, with allegations of using cotton from forced labor camps. During a recent parliamentary inquiry, Shein's lawyer, Yinan Zhu, faced tough questions but declined to provide answers. The company, originally founded in China and now based in Singapore, has ties to approximately 6,000 Chinese factories.
Concerns Raised by MPs
MPs, including Business and Trade Committee chairman Liam Byrne, have raised concerns about the vetting process for firms seeking listings in London. Byrne has written to the London Stock Exchange and the Financial Conduct Authority seeking clarification on the oversight mechanisms in place.
Outcome of the Alleged Deal
While it is reported that Rachel Reeves did not have direct engagements with Shein during her visit to China, the speculation around the £50 billion London listing continues to raise questions about the intersection of commerce and human rights in the global fashion industry.
