Will other Chinese firms follow Shein to London?
Shein’s reported decision to list in London rather than New York is likely to be an anomaly rather than a trend, says Megan Penick
Fashion giant Shein’s prospective IPO – slated for early next year – has caused something of a stir in the City. Indeed, the decision to list on the London Stock Exchange appears on the surface a major vote of confidence for London, as it looks to compete with the New York Stock Exchange and Nasdaq. In an uncertain economic landscape, it provides reassurance that Britain is still an attractive proposition for the world’s biggest businesses.
In particular, it has prompted speculation that this could be the beginning of a trend that would see more global firms – particularly those based in China – shun US listings in favour of London. The incoming US government’s plan to introduce tariffs on goods from China adds to the argument that Chinese firms that had been eyeing a listing in the US – particularly those that have significant sales in the US – may think again.
However, the feeling in New York is somewhat different. The general sense is that this is a one-off, driven by factors outside the election.
Will other Chinese firms follow Shein to London?