Shein Group's London listing is being slowed by an extended approval process of the company's governance by the Financial Conduct Authority, according to Reuters.
While the online retailer filed for the initial public officer in June, the UK regulator is reportedly demanding disclosures over its supply chain and legal risks are 'bulletproof after allegations from an advocacy group concerning labour practices in China, according to sources cited by the newswire.
Advocacy group Stop Uyghur Genocide has claimed Shein sources cotton from Xinjiang, a region linked to accusations of forced labour.
The Home Office's Independent Anti-Slavery Commissioner has expressed concerns to the government about Shein’s IPO, referencing working practices at the online retailer's suppliers.
Shein has refuted these claims, stating its zero-tolerance policy for forced labour and highlighting steps taken to enhance governance, such as forming an ESG advisory board.
Approval from Chinese regulators for the IPO is also pending and is expected to follow the FCA’s decision.
A recent Shein sustainability report identified two instances of child labour in its supply chain in 2023 but no cases of forced labour. The company has adopted verification methods to track the origin of its cotton.
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