Shein’s planned London IPO is facing a backlash from both politicians and some of the UK’s biggest fund managers due to concerns over workers’ rights at the retailer.
The capital is up against New York for the £53bn float of the business, which would see it immediately pushed into the FTSE 100.
Senior politicians, including three parliamentary committee chairs, have pressed for more scrutiny of the company, according to The Guardian.
They insisted that the listing should be given further examination and that it should not be permitted to go ahead while parliament is dissolved for the general election.
Conservative chair of the Commons foreign affairs committee Alicia Kearns said: “With Shein’s prices so low the London Stock Exchange needs to ask itself, whose suffering is subsiding those prices?
“A company which has failed to make full disclosures about its supply chains as required by UK law, and where there are grave concerns about its factory working conditions has no place in London.”
Labour chair of the international development select committee Sarah Champion added: “Transparency in supply chains is vital and something all governments should be demanding.
“Serious concerns have been raised about the use of modern slavery by Shein which need investigating.”
Additionally, Aviva Investors, M&G and Schroders are among UK fund managers which could turn away from the IPO, This is Money reported.
The UK Sustainable Investment and Finance Association (UKSIF) said it did not want the capital to “become a listing place of last resort for companies with poor human rights records”.
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In 2022, a Channel 4 undercover investigation into factories supplying Shein showed that factory workers were working up to 18 hours a day including at weekends, and had just one day off per month, while being paid 3p per garment.
Shein stepped up plans for its a record-breaking float on the London Stock Exchange earlier this month, with the business reported to have picked London for a listing after facing regulatory hurdles between China and the US, and pushback from American regulators.
The news comes after the retailer saw profits more than double to over $2bn (£1.6bn) in April.
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